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| PF calculations |
Need to know the details on PF calculations |
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| G BALASUBRAMANIAN says: |
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Friend, before knowing PF calculations it is mandetory to know different pay viz Basic Pay, Gross pay & Net pay. The PF will be calculated only on Basic Pay. For Example Gross pay of a particular designation is as under. Basic pay (Rs 1660) + 830 (HRA) + 830 (Other Allownces) = 3320/-. Now PF is calculated on the basic pay i.e Rs 1660/-. Then as per EPF Act the employee and employeer must contribute 12% each on the basic pay (here Rs 1660/-) total 24% is to be remittted to PF authorities every month. Out of 12 % employer share 3.67% will go to EPF fund and 8.33% will go to EPF pension Fund. |
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| bhagya chowdary says: |
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HI Nishant,
Please see below how pf is calculated
Provident Fund, 1952:
Provident fund is calculated @ 12% on the basic salary, which indeed is deducted from Employee's salary and the same plus 12% on the basic is contributed by the employer. So the aggregate 12% + 12% is remitted to the Provident fund Department and along with includes Administrative charges like EDLIS+Admin works contribution is 1.61%(1.11%+0.5%)
I.e.; 12%+12%+1.61%=25.61%
Where as in Employer contribution 12% is divided into 8.33%(PS) + 3.67% (EPF)
PS: Pension Scheme
EPF: Employee PF
EDLIS: Employee direct link insurance scheme
Always PF 12% is calculated on Basic Salary.
So, Sum of covered for employee total PF is 12%(Emp) + 3.67% (Employer)=15.67%
Rest of the 8.33% covered on Pension scheme.
Example:
Employee Side- 12% of Basic(Gross is:8000/month)
So if Basic of an employee is 3200/Basic+DA then
ESI contribution would be 3200*12% = 384 Rupees
Employer side- 12% of Basic(Gross is:8000/month)
ESI contribution would be 3200* 12% = 384 Rupees.
Admin charges – 1.61% of Basic(Gross is:8000/month)
Contribution would be 3200*1.61% = 52 Rupees.
Total: 384+384+52 = 820 Rupees. |
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