Dear All,
As I am aware that PF Ceiling limit for deduction is 15,000. I have recently received my first Salary Slip from the employer, in which following bifurcation of the salary is mentioned;
EARNINGS:
Basic = 9357
Connveyance = 1600
Bonus = 584
Special Allowance = 5391
Total Gross = 16,950
DEDUCTIONS:
PF = 1800
ESIC = 297
PT (Madhya Pradesh) = 208
My argument with the HR is that my PF should be deducted on Basic i.e. 9357 * 12% = 1125, whereas our HR Manager is arguing that as the ceiling of PF is Rs. 15000 so it will be deducted on 15000 as my total earnings is more than 15000.
In case my Basic Salary would be 15000 or more...then only PF deduction would have been Rs. 1800, but my basic is only 9375, then it should only be Rs. 1125.
Kindly help me in this...Am i correct or my HR Manager is correct?
Thanks in advance.
From India, Bikaner
2As I am aware that PF Ceiling limit for deduction is 15,000. I have recently received my first Salary Slip from the employer, in which following bifurcation of the salary is mentioned;
EARNINGS:
Basic = 9357
Connveyance = 1600
Bonus = 584
Special Allowance = 5391
Total Gross = 16,950
DEDUCTIONS:
PF = 1800
ESIC = 297
PT (Madhya Pradesh) = 208
My argument with the HR is that my PF should be deducted on Basic i.e. 9357 * 12% = 1125, whereas our HR Manager is arguing that as the ceiling of PF is Rs. 15000 so it will be deducted on 15000 as my total earnings is more than 15000.
In case my Basic Salary would be 15000 or more...then only PF deduction would have been Rs. 1800, but my basic is only 9375, then it should only be Rs. 1125.
Kindly help me in this...Am i correct or my HR Manager is correct?
Thanks in advance.
From India, Bikaner
HR is considering all amounts except conv for pf deductions, and by this way the employee is getting extra benefit from employer’s contribution side
@GLIDOR Employers Contribution is also deducted from Employee’s salary..Even though in that case total amount deducted should be 1125+1125...and not 1800
From India, Bikaner
From India, Bikaner
Dear
PF Contrubution should be on Basic+DA, in your case Basic is 9357 and deduction should be made in this, so please ask HR to review and study the Defination of "Wages" in Bare Act EPF & Misc. Prov. Act 1952.
From India, Delhi
PF Contrubution should be on Basic+DA, in your case Basic is 9357 and deduction should be made in this, so please ask HR to review and study the Defination of "Wages" in Bare Act EPF & Misc. Prov. Act 1952.
From India, Delhi
Hi, I agree with Mr Rajesh. Your HR has considered incorrect amount for calculating PF.
From India, Mumbai
From India, Mumbai
Dear experts,
I (hr executive) join new company some time before. I am facing problem to understand salary breakup here, as i know as per rule
basic is 50% of gross and HRA is 40-50%of basic and other allowances like conveyance, LTA, and others should be in salary breakup.
But in my company salary breakup is different. Also pf deduct on minimum wage or 15000.
please help me to understand this breakup of salary is wrong or right.
Please have a look on attachment.
From India
I (hr executive) join new company some time before. I am facing problem to understand salary breakup here, as i know as per rule
basic is 50% of gross and HRA is 40-50%of basic and other allowances like conveyance, LTA, and others should be in salary breakup.
But in my company salary breakup is different. Also pf deduct on minimum wage or 15000.
please help me to understand this breakup of salary is wrong or right.
Please have a look on attachment.
From India
Rinki,
This site shall answer most of your concerns in payroll.
It would be a good idea to understand salary components along with labour law workings the way they are done in a company.
Am not endorsing any brand.
My colleague worked up his way with payroll nuances from an
experienced person.
Should you want i can connect you.
Goodluck!
From India, Mumbai
This site shall answer most of your concerns in payroll.
It would be a good idea to understand salary components along with labour law workings the way they are done in a company.
Am not endorsing any brand.
My colleague worked up his way with payroll nuances from an
experienced person.
Should you want i can connect you.
Goodluck!
From India, Mumbai
If an employee’s basic salary is 18000 Rs, then we have to calculate pension and EDLI on only 15000 Rs.
Employee PF Contribution 12 % On 18000 = 2160
Employer Pension Contribution 8.33% On 18000 = 1250
Employer PF contribution = 2160-1250 = 910 ( Here we don’t take 3.67% )
Note : When you use ECR excel it will be calculate automatically. We just need to enter basic salary of employee.
Read more details @ How To Calculate PF Of Basic Salary More Than 15000
From India, Hyderabad
Employee PF Contribution 12 % On 18000 = 2160
Employer Pension Contribution 8.33% On 18000 = 1250
Employer PF contribution = 2160-1250 = 910 ( Here we don’t take 3.67% )
Note : When you use ECR excel it will be calculate automatically. We just need to enter basic salary of employee.
Read more details @ How To Calculate PF Of Basic Salary More Than 15000
From India, Hyderabad
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Salary Sheet & PF PT Calculation & Challan Nov 2010.xls