Hi Team, Below are my salary details:
- Basic: Rs. 12,000
- HRA: Rs. 6,000
- Conveyance: Rs. 800
- Special Allowance: Rs. 6,650
- Medical Allowance: Rs. 1,250
- Food Allowance: Rs. 1,500
Gross pay = Rs. 28,200, out of which my company is deducting Rs. 1,800 as PF. Can anybody please explain to me whether the deducted PF amount is correct or not?
From India, Chennai
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- Basic: Rs. 12,000
- HRA: Rs. 6,000
- Conveyance: Rs. 800
- Special Allowance: Rs. 6,650
- Medical Allowance: Rs. 1,250
- Food Allowance: Rs. 1,500
Gross pay = Rs. 28,200, out of which my company is deducting Rs. 1,800 as PF. Can anybody please explain to me whether the deducted PF amount is correct or not?
From India, Chennai
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Hi Kirubakaran N, as per the current PF rules, the deduction should be at a rate of 12% on (Basic + DA). In the above-given salary package, there is only "Basic," so it applies to 12,000. Therefore, it has to be (12,000 X 12%) with a maximum of 1,440/- deduction. You can ask the concerned HR about the excess deduction.
Hope this will help. All the best.
From India, Ahmedabad
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32Hope this will help. All the best.
From India, Ahmedabad
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Mr. Kibakaran,
Your company is calculating the PF wage at Rs. 15,000/-. EPFO recently raised the pension scheme wage from Rs. 6,500/- to Rs. 15,000/-. In this connection, your company is calculating the PF wage based on Rs. 15,000/- at 12%, which equals Rs. 1,800/-.
I hope your doubts have been cleared. If you require any further clarification, please feel free to ask.
Regards,
Sudharshanan
From India, Madras
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Your company is calculating the PF wage at Rs. 15,000/-. EPFO recently raised the pension scheme wage from Rs. 6,500/- to Rs. 15,000/-. In this connection, your company is calculating the PF wage based on Rs. 15,000/- at 12%, which equals Rs. 1,800/-.
I hope your doubts have been cleared. If you require any further clarification, please feel free to ask.
Regards,
Sudharshanan
From India, Madras
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12% deduction on the PF ceiling of Rs.15000/- is Rs.1800/- which has been deducted by your company.. Hope this is clear
From India, Mumbai
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From India, Mumbai
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The PF amount deducted was excessive. It should be ₹1,440, which is calculated as 12% of the Basic Pay of ₹12,000. Yes, recently there has been a change in the PF ceiling to ₹15,000 from ₹6,500. However, the basic rule remains the same.
Hope it is clear!
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Hope it is clear!
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PF Wages According to Section 2(b) of EPF & MP Act 1952
Mr. Manoj Devda, I herewith furnish the PF wages mean according to Section 2(b) of EPF & MP Act 1952. All emoluments which are earned by an employee while on duty, on leave, or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but do not include:
- The cash value of any food concession.
- Any dearness allowance (that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living), house rent allowance, overtime allowance, bonus, commission, or any other similar allowance payable to the employee in respect of his employment or of work done in such employment.
- Any presents made by the employer.
For more details, kindly view the link: http://www.epfochennai.tn.nic.in/pdf/RO_basicwages.pdf
Regards,
Sudharshanan
From India, Madras
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Mr. Manoj Devda, I herewith furnish the PF wages mean according to Section 2(b) of EPF & MP Act 1952. All emoluments which are earned by an employee while on duty, on leave, or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but do not include:
- The cash value of any food concession.
- Any dearness allowance (that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living), house rent allowance, overtime allowance, bonus, commission, or any other similar allowance payable to the employee in respect of his employment or of work done in such employment.
- Any presents made by the employer.
For more details, kindly view the link: http://www.epfochennai.tn.nic.in/pdf/RO_basicwages.pdf
Regards,
Sudharshanan
From India, Madras
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It seems your employer does not want unnecessary litigation with PF officials regarding the wage/salary structure. Hence, they have deducted PF on the salary construed at the maximum to date. This is good, and there is nothing to worry about. In a short period, say by April, you will receive Form 23, which will reflect this fact.
From India, Chennai
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From India, Chennai
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Hello HR Bloods and dear Kirubakaran Bro, This is Ajay SP. My email id is [Email Removed For Privacy Reasons].
Understanding PF and ESI Eligibility
It's purely because of the ceiling of PF to Rs 15,000/-. If your salary is less than Rs 15,000/-, then you would be covered under the ESI Act. For a worker and his family to be eligible for the benefits of ESI, the worker should have been working in the organization for more than 78 days, and his salary should be less than Rs 15,000/-.
Since your salary is more than Rs 15,000/- (you are getting around 28K), you are not eligible under the ESI Act. Hence, they have taken the minimum ceiling amount for PF calculation. This Basic + DA is applicable for the calculation of PF only when the sum amount exceeds Rs 15,000/-. That is why you have been deducted Rs 1,800 (12% of 15,000). Hope you are clear now.
Employer Contribution and Future Savings
Also, please don't worry, bro, about PF matters in the near future too, because whatever amount they have deducted from you, the employer has to contribute the same amount too from their treasury. Hence, they will be more cautious in this matter. Ha ha. EPFO is mainly for our future savings & protection scheme. Hence, happily contribute more to it. You can also avail the facility of additional PF. For more details regarding Additional PF, please feel free to mail me.
Thank You :)
From India, Bangalore
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Understanding PF and ESI Eligibility
It's purely because of the ceiling of PF to Rs 15,000/-. If your salary is less than Rs 15,000/-, then you would be covered under the ESI Act. For a worker and his family to be eligible for the benefits of ESI, the worker should have been working in the organization for more than 78 days, and his salary should be less than Rs 15,000/-.
Since your salary is more than Rs 15,000/- (you are getting around 28K), you are not eligible under the ESI Act. Hence, they have taken the minimum ceiling amount for PF calculation. This Basic + DA is applicable for the calculation of PF only when the sum amount exceeds Rs 15,000/-. That is why you have been deducted Rs 1,800 (12% of 15,000). Hope you are clear now.
Employer Contribution and Future Savings
Also, please don't worry, bro, about PF matters in the near future too, because whatever amount they have deducted from you, the employer has to contribute the same amount too from their treasury. Hence, they will be more cautious in this matter. Ha ha. EPFO is mainly for our future savings & protection scheme. Hence, happily contribute more to it. You can also avail the facility of additional PF. For more details regarding Additional PF, please feel free to mail me.
Thank You :)
From India, Bangalore
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Hi Recently govt of india raised the amount from 6500 to 15000. so 12% of 15000 is 15000*12/100=1800 this amount is correct. No issues
From India, Chennai
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From India, Chennai
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Clarification on PF Calculation
To all those mates who stressed on Basic + DA for PF calculation...
Basic + DA for the PF department is different from the Basic + DA set as per minimum wages. For the PF department, 70% of the total salary or ₹15,000, whichever is lower, is the PF salary. So in this case, ₹15,000 is lower than 70% of ₹28,200. Therefore, the amount ₹1,800 is correct.
Even if the Basic was ₹11,000 and DA was ₹3,000 in this case where the total salary is ₹28,200, the PF deducted has to be ₹1,800.
You may kindly refer to rule 2a of PF...
From India, Kochi
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To all those mates who stressed on Basic + DA for PF calculation...
Basic + DA for the PF department is different from the Basic + DA set as per minimum wages. For the PF department, 70% of the total salary or ₹15,000, whichever is lower, is the PF salary. So in this case, ₹15,000 is lower than 70% of ₹28,200. Therefore, the amount ₹1,800 is correct.
Even if the Basic was ₹11,000 and DA was ₹3,000 in this case where the total salary is ₹28,200, the PF deducted has to be ₹1,800.
You may kindly refer to rule 2a of PF...
From India, Kochi
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With effect from September 01, 2014, the EPF limit has been revised. Now, Rs 15,000/- is the maximum limit of basic salary for the deduction of EPF, at 12% on Rs 15,000 and above the basic salary amount. So, 15,000 * 12% = Rs 1,800/-. However, since your basic salary is less than Rs 15,000/-, therefore, your actual 12% on Rs 12,000/- = Rs 1,440/-. Please ask your HR for the excess deduction; it may be arrear EPF also since your question is not clear on the deduction, whether it is one time or every month.
From India, Delhi
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From India, Delhi
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As per new rule , 12% deduction on the PF ceiling of Rs.15000/- is Rs.1800/- which has been deducted by your company This is the correct amount to be deducted.. thanks
From India, Delhi
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From India, Delhi
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Dear All, As per latest PF rules minimum basic should be Rs.15000/- So as per that 15000*12%=1800 this rule is with effect from September 2014. Thanks & Regards, Anil M
From India, Bangalore
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From India, Bangalore
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You mentioned that as per the PF rules, the minimum basic should be Rs. 15,000/-. However, I am not sure about this because deciding the minimum basic of any employee is not under the jurisdiction of PF authorities. Could you please provide any link or circular regarding this?
If an employee receives a salary of more than Rs. 15,000/-, but only Rs. 4,000/- is shown as basic on his payslip without any other components such as DA, should we deduct PF on the basic amount of Rs. 4,000/- or must we deduct PF on Rs. 15,000/-?
I would greatly appreciate it if anyone could provide me with a concrete rule regarding this.
Thank you.
From India, Mumbai
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If an employee receives a salary of more than Rs. 15,000/-, but only Rs. 4,000/- is shown as basic on his payslip without any other components such as DA, should we deduct PF on the basic amount of Rs. 4,000/- or must we deduct PF on Rs. 15,000/-?
I would greatly appreciate it if anyone could provide me with a concrete rule regarding this.
Thank you.
From India, Mumbai
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Hi Kirubakaran, As per the recent ceiling the PF basic is 15000 and the deduction will be 12% of it. i.e. Rs.1800. So it is correct.
From India, Coimbatore
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From India, Coimbatore
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PF Deduction Explanation
Your PF deduction is correct as per the calculations:
- **Employee Share:** 12%
- **Employer Share:** 3.67% + 8.33%
For a basic salary of ₹12,000, the calculations are as follows:
- Employee Share: ₹1,440
- Employer Share: ₹440 (3.67%) + ₹1,000 (8.33%)
Total Contribution
- A/C 01 Employee Share + Employer Share: 12% + 3.67% = ₹1,880
This is your part of the CTC (Cost to Company).
Regards
From India, Suri
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Your PF deduction is correct as per the calculations:
- **Employee Share:** 12%
- **Employer Share:** 3.67% + 8.33%
For a basic salary of ₹12,000, the calculations are as follows:
- Employee Share: ₹1,440
- Employer Share: ₹440 (3.67%) + ₹1,000 (8.33%)
Total Contribution
- A/C 01 Employee Share + Employer Share: 12% + 3.67% = ₹1,880
This is your part of the CTC (Cost to Company).
Regards
From India, Suri
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Team, please visit the link below for further clarifications: https://www.citehr.com/521814-pf-calculation.html
From India, Kochi
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From India, Kochi
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I do agreed that Limits of PF wages has been increased but if his Basic salary is 12000 than how can employer deduct on 15000.
From India, Delhi
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From India, Delhi
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Your company is calculating the PF wage at Rs. 15,000/-. EPFO recently raised the pension scheme wage from Rs. 6,500/- to Rs. 15,000/-. As per this, your company is calculating the PF wage from Rs. 15,000/- at 12% = Rs. 1,800/-. However, it should be calculated on the basic salary, which is 12,000 * 12% = Rs. 1,440 only. You can discuss this with HR regarding this matter.
Regards
From India, Delhi
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Regards
From India, Delhi
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Thank you for the information. I have a doubt regarding PF deduction. As per my understanding, PF is deducted from the basic salary, not the net salary. If the basic salary is less than 15,000, then we calculate the PF as per the ESI Act, which is based on 12,000 only. Please correct me if I am wrong. Can you please provide clarification on this matter so that I can understand the PF deduction process better, specifically whether it is based on the net or basic salary?
Regards,
Kashish Sandhu
From India, Delhi
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Regards,
Kashish Sandhu
From India, Delhi
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Dear All if his basic is 12000/- on which amount Pf should be dedeucted.Rs. 12000/- Or 15000/- N if his basic is suppose 16000/- thn on whch amt it should be Calculated?????
From India, Mumbai
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From India, Mumbai
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Hi Guys, There is a change in PF ceiling of Rs.15000/ from 6500/-INR. But this is effective from April 1st 2015. Am i right? Regards Harinisha Prabhakaran
From India, Chennai
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From India, Chennai
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There has been a change in the PF ceiling from Rs. 6,500/- to Rs. 15,000/-. However, his basic pay is only Rs. 12,000/-. If it is equal to or more than Rs. 15,000, then only Rs. 1,800 will be applicable.
Regards,
Harinisha Prabhakaran
From India, Chennai
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Regards,
Harinisha Prabhakaran
From India, Chennai
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PF Ceiling Increase and Calculation Clarification
The PF ceiling has increased from ₹6,500 to ₹15,000, but the calculation of PF is still based on Basic + DA and not on Gross salary. Therefore, based on the given salary details, your deduction will be ₹1,440, not ₹1,800. You may verify the excess amount details with the HR department.
Hope this clarifies.
Thank you,
Regards,
Sandeep Krishnan R.
From India, Kochi
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The PF ceiling has increased from ₹6,500 to ₹15,000, but the calculation of PF is still based on Basic + DA and not on Gross salary. Therefore, based on the given salary details, your deduction will be ₹1,440, not ₹1,800. You may verify the excess amount details with the HR department.
Hope this clarifies.
Thank you,
Regards,
Sandeep Krishnan R.
From India, Kochi
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PF Calculation Based on Basic + DA
As per the current PF Act, the PF should be calculated on Basic + DA. In the above-mentioned salary breakup, DA is not being shown, only Basic Rs. 12,000 is being mentioned. It means that PF should be deducted at 12% on Basic only. Hence, the deduction of Rs. 15,000 is excessive. Please report this to your HR/Accounts.
Regards,
Vinay
From India, Allahabad
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As per the current PF Act, the PF should be calculated on Basic + DA. In the above-mentioned salary breakup, DA is not being shown, only Basic Rs. 12,000 is being mentioned. It means that PF should be deducted at 12% on Basic only. Hence, the deduction of Rs. 15,000 is excessive. Please report this to your HR/Accounts.
Regards,
Vinay
From India, Allahabad
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