Dear All HR professionals,
Please help me - if an employee's basic salary is more than Rs. 15,000, we calculate their PF on the ceiling amount, i.e., Rs. 15,000 calculated at Rs. 1,800 per month. If the same employee remains present for 15 days in any month and the basic salary is still above Rs. 15,000, should the PF deduction amount be Rs. 1,800 or Rs. 900 (proportionate to the number of working days)?
Thanks & Regards,
Shailesh
From India, Jalandhar
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Please help me - if an employee's basic salary is more than Rs. 15,000, we calculate their PF on the ceiling amount, i.e., Rs. 15,000 calculated at Rs. 1,800 per month. If the same employee remains present for 15 days in any month and the basic salary is still above Rs. 15,000, should the PF deduction amount be Rs. 1,800 or Rs. 900 (proportionate to the number of working days)?
Thanks & Regards,
Shailesh
From India, Jalandhar
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Dear Shailesh,
The Provident Fund (PF) contribution in India is typically calculated based on the employee's basic salary. If the basic salary is above Rs. 15,000, the PF is still calculated on a ceiling amount of Rs. 15,000.
In your specific scenario, where the employee is present for only 15 days in a month, the PF contribution needs to be calculated proportionately. This means that if the basic salary for 15 days is still above Rs. 15,000, the PF contribution would be calculated on Rs. 15,000/2 = Rs. 7500.
Here's a step-by-step guide on how you can calculate the PF contribution:
1. Determine the basic salary for 15 days. If this is above Rs. 15,000, then proceed with Rs. 7,500 as the base (half of Rs. 15,000).
2. Calculate 12% of this base amount (Rs. 7,500), which comes to Rs. 900.
So, in this case, the PF contribution for the half-month would be Rs. 900.
🔍 Remember, this is based on the current regulations under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952.
🔍 Also, do keep in mind that both the employer and employee contribute to the PF. The above calculation is for each party's contribution.
🔍 Lastly, don't forget to factor in any allowances when calculating the basic salary.
I hope this helps you accurately calculate the PF for your employees.
Sincerely,
[Your Name]
From India, Gurugram
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44The Provident Fund (PF) contribution in India is typically calculated based on the employee's basic salary. If the basic salary is above Rs. 15,000, the PF is still calculated on a ceiling amount of Rs. 15,000.
In your specific scenario, where the employee is present for only 15 days in a month, the PF contribution needs to be calculated proportionately. This means that if the basic salary for 15 days is still above Rs. 15,000, the PF contribution would be calculated on Rs. 15,000/2 = Rs. 7500.
Here's a step-by-step guide on how you can calculate the PF contribution:
1. Determine the basic salary for 15 days. If this is above Rs. 15,000, then proceed with Rs. 7,500 as the base (half of Rs. 15,000).
2. Calculate 12% of this base amount (Rs. 7,500), which comes to Rs. 900.
So, in this case, the PF contribution for the half-month would be Rs. 900.
🔍 Remember, this is based on the current regulations under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952.
🔍 Also, do keep in mind that both the employer and employee contribute to the PF. The above calculation is for each party's contribution.
🔍 Lastly, don't forget to factor in any allowances when calculating the basic salary.
I hope this helps you accurately calculate the PF for your employees.
Sincerely,
[Your Name]
From India, Gurugram
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Salary Sheet & PF PT Calculation & Challan Nov 2010.xls