The Provident Fund contribution is the employee's 12% of his/her basic salary. The employer also has to contribute their part to the employee provident fund.
For Provident Fund Calculation: The maximum limit for the PF calculation would be 6500 on to an employee's basic. It means even if the employee's basic salary is above Rs 6500/-, the employer is liable to contribute only on Rs 6500/-, that is Rs 780.
However, if an employee so desires, he may voluntarily contribute more than 12%. Apart from it, an employer also has to pay some administration charges. I will explain the various accounts of the PF challan.
A/c No 1: PF contribution Account A/c No 2: PF Admin account A/c No 10: EPS account A/c No 21: EDLIS account A/c No 22: EDLIS admin account
PF admin charge: The employer has to pay 1.1% of basic EDLIS: The employer has to pay 0.5% of basic EDLIS admin charge: The employer has to pay 0.01% of basic
The total additional percentage the employer has to pay is 1.61% of basic. So the payment for the employer would be 13.61% of basic, and the payment for the employee would be 12% of basic.
The employee's payment of 12% of the basic completely goes to the PF account. The employer's Payment of 8.33% goes to the Pension fund, and 3.67% goes to the PF fund.
From India, Bangalore
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482For Provident Fund Calculation: The maximum limit for the PF calculation would be 6500 on to an employee's basic. It means even if the employee's basic salary is above Rs 6500/-, the employer is liable to contribute only on Rs 6500/-, that is Rs 780.
However, if an employee so desires, he may voluntarily contribute more than 12%. Apart from it, an employer also has to pay some administration charges. I will explain the various accounts of the PF challan.
A/c No 1: PF contribution Account A/c No 2: PF Admin account A/c No 10: EPS account A/c No 21: EDLIS account A/c No 22: EDLIS admin account
PF admin charge: The employer has to pay 1.1% of basic EDLIS: The employer has to pay 0.5% of basic EDLIS admin charge: The employer has to pay 0.01% of basic
The total additional percentage the employer has to pay is 1.61% of basic. So the payment for the employer would be 13.61% of basic, and the payment for the employee would be 12% of basic.
The employee's payment of 12% of the basic completely goes to the PF account. The employer's Payment of 8.33% goes to the Pension fund, and 3.67% goes to the PF fund.
From India, Bangalore
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Provident Fund Contribution Details
I am enclosing the latest calculation for your reference:
- A/C 1 (Provident Fund Employee's Contribution @ 12%)
- A/C 1 (Provident Fund Employer's Contribution @ 3.67%)
- A/C 2 (Administration Charges @ 0.85% or (minimum) Rs.500/- whichever is more)
- A/C 10 (Pension Fund Employer's Contribution @ 8.33%)
- A/C 21 (Employee's Deposit Linked Insurance Employer's Contribution @ 0.50%)
- A/C 22 (Administration Charges @ 0.01% or (minimum) Rs.200/- whichever is more)
Please see A/C 2 and A/C 22 for the minimum limit.
Regards
From India, Kolkata
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I am enclosing the latest calculation for your reference:
- A/C 1 (Provident Fund Employee's Contribution @ 12%)
- A/C 1 (Provident Fund Employer's Contribution @ 3.67%)
- A/C 2 (Administration Charges @ 0.85% or (minimum) Rs.500/- whichever is more)
- A/C 10 (Pension Fund Employer's Contribution @ 8.33%)
- A/C 21 (Employee's Deposit Linked Insurance Employer's Contribution @ 0.50%)
- A/C 22 (Administration Charges @ 0.01% or (minimum) Rs.200/- whichever is more)
Please see A/C 2 and A/C 22 for the minimum limit.
Regards
From India, Kolkata
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Provident Fund - Excluded Employee - Definition.pdf
What is Employee Provident Fund.docx