There is a mis concept that PF is calculated on Basic + DA
But how is Basic + DA determined. Labour department publishes Basic + DA but iThere is a mis concept that PF is calculated on Basic + DA
But how is Basic + DA determined. Labour department publishes Basic + DA but it cannot be used for PF calculations. Companies generally put an amount as basic which may be higher than the actual basic and same is the case with DA.
PF wages has to be 75% to 80% of the total salary or Rs 15000 - whichever is lower.
Eg.
Basic - 11000
DA - 3000
SA - 7000
OA - 4000
Total - 25000
In the above case generally people calculate the PF on basic + DA = 11000+3000 = 14000
12%= Rs 1680 which is lower than the actual to be paid.
If salary is 25000 then the 75% of if is 18750 which is higher than 15000. Since 15000 is the lower figure we need to calculate the PF on 15000.
12% of 15000 = 1800 which is to be deducted from the staff salary.
Employer contribution has to be 13.36% of the same amount on which 12% of employee is calculated. Since here it is 15000 the 13.36% = Rs 2004
Basic - 11000
DA - 3000
SA - 7000
OA - 4000
Total - 25000
In the above case generally people calculate the PF on basic + DA = 11000+3000 = 14000
12%= Rs 1680 which is lower than the actual to be paid.
If salary is 25000 then the 75% of if is 18750 which is higher than 15000. Since 15000 is the lower figure we need to calculate the PF on 15000.
12% of 15000 = Rs 1800 which is to be deducted from the staff salary.
Employer contribution has to be 13.36% of the same amount on which 12% of employee is calculated. Since here it is 15000 the 13.36% = Rs 2004
You can get in touch for any further clarification ..
From India, Kochi
2But how is Basic + DA determined. Labour department publishes Basic + DA but iThere is a mis concept that PF is calculated on Basic + DA
But how is Basic + DA determined. Labour department publishes Basic + DA but it cannot be used for PF calculations. Companies generally put an amount as basic which may be higher than the actual basic and same is the case with DA.
PF wages has to be 75% to 80% of the total salary or Rs 15000 - whichever is lower.
Eg.
Basic - 11000
DA - 3000
SA - 7000
OA - 4000
Total - 25000
In the above case generally people calculate the PF on basic + DA = 11000+3000 = 14000
12%= Rs 1680 which is lower than the actual to be paid.
If salary is 25000 then the 75% of if is 18750 which is higher than 15000. Since 15000 is the lower figure we need to calculate the PF on 15000.
12% of 15000 = 1800 which is to be deducted from the staff salary.
Employer contribution has to be 13.36% of the same amount on which 12% of employee is calculated. Since here it is 15000 the 13.36% = Rs 2004
Basic - 11000
DA - 3000
SA - 7000
OA - 4000
Total - 25000
In the above case generally people calculate the PF on basic + DA = 11000+3000 = 14000
12%= Rs 1680 which is lower than the actual to be paid.
If salary is 25000 then the 75% of if is 18750 which is higher than 15000. Since 15000 is the lower figure we need to calculate the PF on 15000.
12% of 15000 = Rs 1800 which is to be deducted from the staff salary.
Employer contribution has to be 13.36% of the same amount on which 12% of employee is calculated. Since here it is 15000 the 13.36% = Rs 2004
You can get in touch for any further clarification ..
From India, Kochi
There Is A Mis Concept That PF Is Calculated On Basic + DA
But How Is Basic + DA Determined. Labour Department Publishes Basic + DA But It Cannot Be Used For PF Calculations. Companies Generally Put An Amount As Basic Which May Be Higher Than The Actual Basic And Same Is The Case With DA.
PF Wages Has To Be 75% To 80% Of The Total Salary Or Rs 15000 - Whichever Is Lower.
Eg.
Basic - 11000
DA - 3000
SA - 7000
OA - 4000
Total - 25000
In The Above Case Generally People Calculate The PF On Basic + DA = 11000+3000 = 14000
12%= Rs 1680 Which Is Lower Than The Actual To Be Paid.
If Salary Is 25000 Then The 75% Of If Is 18750 Which Is Higher Than 15000. Since 15000 Is The Lower Figure We Need To Calculate The PF On 15000.
12% Of 15000 = 1800 Which Is To Be Deducted From The Staff Salary.
Employer Contribution Has To Be 13.36% Of The Same Amount On Which 12% Of Employee Is Calculated. Since Here It Is 15000 The 13.36% = Rs 2004
You Can Get In Touch For Any Further Clarification ..
From India, Kochi
But How Is Basic + DA Determined. Labour Department Publishes Basic + DA But It Cannot Be Used For PF Calculations. Companies Generally Put An Amount As Basic Which May Be Higher Than The Actual Basic And Same Is The Case With DA.
PF Wages Has To Be 75% To 80% Of The Total Salary Or Rs 15000 - Whichever Is Lower.
Eg.
Basic - 11000
DA - 3000
SA - 7000
OA - 4000
Total - 25000
In The Above Case Generally People Calculate The PF On Basic + DA = 11000+3000 = 14000
12%= Rs 1680 Which Is Lower Than The Actual To Be Paid.
If Salary Is 25000 Then The 75% Of If Is 18750 Which Is Higher Than 15000. Since 15000 Is The Lower Figure We Need To Calculate The PF On 15000.
12% Of 15000 = 1800 Which Is To Be Deducted From The Staff Salary.
Employer Contribution Has To Be 13.36% Of The Same Amount On Which 12% Of Employee Is Calculated. Since Here It Is 15000 The 13.36% = Rs 2004
You Can Get In Touch For Any Further Clarification ..
From India, Kochi
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Salary Sheet & PF PT Calculation & Challan Nov 2010.xls