PF Deduction Calculation Query
I am encountering an issue with PF Deduction. If Mr. A's earned basic salary in July is 3000 Rs, how should we calculate the PF deduction? Is it calculated as 3000 * 12/100, resulting in a PF amount of 360 Rs? Or is it calculated as 6500 * worked days/working days * 12% = 251 Rs PF amount?
I am asking in the scenario where someone earns less than 6500 Rs as a basic salary. In such cases, can we consider the total earned amount, or is there another method we should follow?
Regards
From India, Bangalore
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12I am encountering an issue with PF Deduction. If Mr. A's earned basic salary in July is 3000 Rs, how should we calculate the PF deduction? Is it calculated as 3000 * 12/100, resulting in a PF amount of 360 Rs? Or is it calculated as 6500 * worked days/working days * 12% = 251 Rs PF amount?
I am asking in the scenario where someone earns less than 6500 Rs as a basic salary. In such cases, can we consider the total earned amount, or is there another method we should follow?
Regards
From India, Bangalore
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PF contribution is applicable on earned Basic + DA (if any) at 12%. Furthermore, it should be considered when creating the salary breakdown that Basic + DA should be below the minimum wages applicable for the specified grade of employee.
For example, if A's Basic + DA is Rs. 4500 for a month and he worked for 28 days, then Rs. 4200 will be used for the calculation of PF contribution. The PF amount will be Rs. 504.
From India, Gurgaon
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For example, if A's Basic + DA is Rs. 4500 for a month and he worked for 28 days, then Rs. 4200 will be used for the calculation of PF contribution. The PF amount will be Rs. 504.
From India, Gurgaon
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PF CHALLAN & CALCULATION SHEET.xls
Basic 4 pf.pdf
Method of calculation of wages.doc