PF Calculations
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Transcript of PF Calculations
Pf is calculated on only basic of salary, not DA 2. Employee contibution is 12%3. Employer contribution is devided in two partsA) 3.67%- which goes directly in the pf account of an emplyee.B) 8.33%- Which goes to family Pension Scheme.
Including above, employer has to pay Administrative Charges = 1.10% onthe total ammount of basic ie (6500 & above also).Then Employer has to pay contribution for EDLI Scheme = 0.5% & Administrative charges =0.01% of the Ammount of total basic cosider for Family pension scheme which does not include total basic amount above 6500
So this total is= 12%( 3.67+8.33)+1.10+0.5+0.01=13.61% paid by employer.
6000 basic = Pf contribution by Emplyer=720+66+30+0.6=816.6voluntary Ceiling was 3500/- upto 01.10.94, then revised to 5000/-.Then it revaised to 6500/- from 01.04.1995.
and remains same, further there is no amendment.
if the employee basic wages exceeding Rs.6500/-, there is
no liability on the part of employer to pay PF contribution.
If employee joined with less than above basic, continuing service with
more than the basic of Rs.6500/- , employer bound to pay PF contribution
on the Rs.6500/- only (.i.e.Rs.780/-),eventhough his basic salary more
than that.
attribution http://www.citehr.com/427526-employeer-contribution-epf-excel-software.html#ixzz2jD56VbWn
Please find the below details for PF calculation on basic salary:
A/C NO.1 :- From Employee 12% + Employer 3.67%
A/C No.2 :- 1.1 % (it's called PF admin charges)
A/C No.10 :- 8.33 % (pension)
A/C No. 21 :- 0.5% (E.D. L.I)
A/C No.22 :- 0.01 % (EDLI admin charges)
Note:- The PF Ceiling amount is Rs.6500 /- if the Basic salary is >= 6500 /- the pension salary will be paid Rs.541 and remaining goes to PF i.e A/C NO.1
attribution http://www.citehr.com/427526-employeer-contribution-epf-excel-software.html#ixzz2jD5SfWCT