Hi,
For 31 days, if Basic is 22000, then PF = 1800. However, if he is present only for 18 days, how do we calculate the PF?
Which of the following calculations is correct for 18 days:
- For 18 days, Basic = 22000/31*18 = 12774. Then PF = 12774 * 0.12 = 1533
- Or for 18 days, PF = 1800/31*18*0.12 = 1045
Please review and let me know if you need further assistance.
From India, Ernakulam
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2For 31 days, if Basic is 22000, then PF = 1800. However, if he is present only for 18 days, how do we calculate the PF?
Which of the following calculations is correct for 18 days:
- For 18 days, Basic = 22000/31*18 = 12774. Then PF = 12774 * 0.12 = 1533
- Or for 18 days, PF = 1800/31*18*0.12 = 1045
Please review and let me know if you need further assistance.
From India, Ernakulam
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Dear Rajasreepmanoj, If PF contribution for 31 days is 1800/-, for 18 days it should be 1800x18/31 = 1045/-. Hence the second option is correct. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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Hello Rajasreepmanoj,
I don't know much about the calculation of PF; all I know is that it's 12% of basic and DA. If the basic is 22000, then 12% of that is 2640. Please guide me on how it comes to 1800.
Regards,
Sarita
From India, Mumbai
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I don't know much about the calculation of PF; all I know is that it's 12% of basic and DA. If the basic is 22000, then 12% of that is 2640. Please guide me on how it comes to 1800.
Regards,
Sarita
From India, Mumbai
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Hello Rajasreepmanoj,
I don't know much about the calculation of PF; all I know is that it's 12% of basic & DA. If the basic is 22000, then 12% of that is 2640. Please guide me on how it comes to 1800.
Regards,
Sarita
Please see the notification issued by the Employees' Provident Fund Organization, Ministry of Labour, Government of India, dated 28-08-2014, enhancing the statutory wage ceiling limit from Rs. 6500 to Rs. 15000 w.e.f. 01-09-2014.
So even though the basic is 22000/-, PF should be calculated on 15000*12% = 1800.
From India, Ernakulam
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I don't know much about the calculation of PF; all I know is that it's 12% of basic & DA. If the basic is 22000, then 12% of that is 2640. Please guide me on how it comes to 1800.
Regards,
Sarita
Please see the notification issued by the Employees' Provident Fund Organization, Ministry of Labour, Government of India, dated 28-08-2014, enhancing the statutory wage ceiling limit from Rs. 6500 to Rs. 15000 w.e.f. 01-09-2014.
So even though the basic is 22000/-, PF should be calculated on 15000*12% = 1800.
From India, Ernakulam
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Hello Rajasreepmanoj,
You should use the first option. Basic = 22000 / 31 * 18 = 12774, then PF = 12774 * 0.12 = 1533. It is absolutely correct as per EPF Compliance Authority. For the above question, I met with EPF Regional Provident Fund Commissioner also during 7A.
From India, Delhi
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You should use the first option. Basic = 22000 / 31 * 18 = 12774, then PF = 12774 * 0.12 = 1533. It is absolutely correct as per EPF Compliance Authority. For the above question, I met with EPF Regional Provident Fund Commissioner also during 7A.
From India, Delhi
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Dear rajasreepmanoj, The option B is right as EPF is always deducted on Salary earned and in case earning is within the ceiling limits, deduction will be made on total amount so earned. P K Sharma
From India, Delhi
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From India, Delhi
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P K Sharma Ji,
You are mistaken. If an employee earns Rs. 12,774 per month as a basic wage, then you have to submit EPF on Rs. 12,774 and deduct the same amount from the employee's salary. The number of days worked does not matter, whether it is for 5 days' salary or 30 days.
Thank you.
From India, Delhi
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You are mistaken. If an employee earns Rs. 12,774 per month as a basic wage, then you have to submit EPF on Rs. 12,774 and deduct the same amount from the employee's salary. The number of days worked does not matter, whether it is for 5 days' salary or 30 days.
Thank you.
From India, Delhi
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Dear Sunil,
You have misunderstood the meaning of the sentence provided below. EPF is always deducted from the salary earned, and if the earnings are within the ceiling limits, the deduction will be based on the total amount earned.
P K Sharma
From India, Delhi
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You have misunderstood the meaning of the sentence provided below. EPF is always deducted from the salary earned, and if the earnings are within the ceiling limits, the deduction will be based on the total amount earned.
P K Sharma
From India, Delhi
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Sharma ji,
In the case mentioned - option B calculates to 1800/31*18 = 1043/-. Do you mean to say this is correct? This seems contradictory to your statement of "deduction will be made on the total amount earned." I believe the calculation should be 22000/31*18 * 12% = 1533/-.
From United Arab Emirates
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In the case mentioned - option B calculates to 1800/31*18 = 1043/-. Do you mean to say this is correct? This seems contradictory to your statement of "deduction will be made on the total amount earned." I believe the calculation should be 22000/31*18 * 12% = 1533/-.
From United Arab Emirates
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Ji, PF shud be calculated on earned Basic + DA which is 12774/- in ur case. Hence EPF shud be 12774/- * 12% = 1533/-
From United Arab Emirates
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From United Arab Emirates
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Dear friends,
I was away from CiteHR for the last two days; hence, I am unable to notice the above discussions. If the salary is above the ceiling limit, the employer will have two options to contribute to EPF.
1. To contribute based on the ceiling salary. The contribution for one month will be 15000 x 12% = 1800/- and for 18 days (out of 31), it is 1800 x 18/31 = 1045.
2. To contribute based on the actual salary with the consent of the employee. The contribution for one month is 22000 x 12% = 2640/- and for 18 days (out of 31), it is 2640 x 18/31 = 1533.
However, the initial query is very specific on the contribution based on the ceiling salary. So, why is there room for confusion?
Abbas.P.S
From India, Bangalore
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I was away from CiteHR for the last two days; hence, I am unable to notice the above discussions. If the salary is above the ceiling limit, the employer will have two options to contribute to EPF.
1. To contribute based on the ceiling salary. The contribution for one month will be 15000 x 12% = 1800/- and for 18 days (out of 31), it is 1800 x 18/31 = 1045.
2. To contribute based on the actual salary with the consent of the employee. The contribution for one month is 22000 x 12% = 2640/- and for 18 days (out of 31), it is 2640 x 18/31 = 1533.
However, the initial query is very specific on the contribution based on the ceiling salary. So, why is there room for confusion?
Abbas.P.S
From India, Bangalore
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Dear Rajasreepmanoj You should use first option. basic =22000/31*18=12774 then PF = 12774*.12=1533. Because as per EPF Act, Contribution will be Rs 1800/- or Actual deduction which is lower.
From India, Indore
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From India, Indore
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Dear Harishcbansal, The above statement is incorrect. If you have different opinion, kindly quote the above act as per your posting. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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Basic 22000/- PF deposit = 1800 /- i.e. 12 % 15000/- ( as per P F limit) 18 days PF will be calculated on the Basic of 18 Days.
From India, Delhi
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From India, Delhi
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Even though the salary is Rs. 22000, PF payment is being based on a salary of Rs. 15000. Hence, Rs. 1800 (@12%) is paid to PF. If the attendance is 18 days, the rest of the 13 days have to be recorded as NCP (non-contributory period). Therefore, it is not feasible to pay 22000 x 18/31 x 12%.
I request my friends that if you are not thorough with the provisions of the act, kindly do not misguide others.
From India, Bangalore
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I request my friends that if you are not thorough with the provisions of the act, kindly do not misguide others.
From India, Bangalore
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Dear Concern,
The PF amount is always deducted from the net earnings. Now, the restriction for PF deduction on Salary (Basic + Da) is 15000. This means that 15000 would be your (basic + da). You are not obligated to deduct the PF above this amount. Therefore, when calculating the salary, you can base it on 15000. For instance, if the Basic is 15000, then the PF would be on 15000, i.e., 15000 * 18/31 = 8710 Salary (Basic). The PF amount is calculated as 12% of 8710, i.e., 1045.
In Case 2, if the Basic is 22000 as per your calculation, then the calculation would be 22000 * 18/31 = 12774. The PF would be on 12774, i.e., 1533 rs/-
Thanks,
Shubham
From India, Faridabad
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The PF amount is always deducted from the net earnings. Now, the restriction for PF deduction on Salary (Basic + Da) is 15000. This means that 15000 would be your (basic + da). You are not obligated to deduct the PF above this amount. Therefore, when calculating the salary, you can base it on 15000. For instance, if the Basic is 15000, then the PF would be on 15000, i.e., 15000 * 18/31 = 8710 Salary (Basic). The PF amount is calculated as 12% of 8710, i.e., 1045.
In Case 2, if the Basic is 22000 as per your calculation, then the calculation would be 22000 * 18/31 = 12774. The PF would be on 12774, i.e., 1533 rs/-
Thanks,
Shubham
From India, Faridabad
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