Please help me in calculation of current PF contribution (2019-20) for both employee and employee.
From India
From India
Hi Partner,
The query here is actually quite a wide one. If there is any specific area to be focused on, you could let us know. On a general note, if the basic salary is above Rs.15,000/- per month, the employee PF contribution would be at 12% of the basic salary, while the employer contribution would be at 12% of the basic salary as well. But the employer contribution of 12% could be broken up into 8.33% + 3.67% = 12%. Here 8.33% of the basic is meant to be contributed to the EPS or employee pension scheme while the other 3.67% is contributed to the PF scheme.
So, for an employee out of the 12% (employee contribution) + 12% (employer contribution) = 24%, it is 12% + 3.67% = 15.67% that gets contributed to the PF, while the other 8.33% gets contributed to the employee pension scheme (EPS). If the 8.33% pension contribution exceeds Rs.1250/-, then this is capped at Rs.1250/- and the rest of the amount directed to the PF fund.
If the employee's monthly basic salary is less than Rs.15,000/- per month, then the PF contribution percentage would be based on the basic salary and also allowances deemed as part of the wages, with the same percentage principles mentioned above.
From India, Bengaluru
62The query here is actually quite a wide one. If there is any specific area to be focused on, you could let us know. On a general note, if the basic salary is above Rs.15,000/- per month, the employee PF contribution would be at 12% of the basic salary, while the employer contribution would be at 12% of the basic salary as well. But the employer contribution of 12% could be broken up into 8.33% + 3.67% = 12%. Here 8.33% of the basic is meant to be contributed to the EPS or employee pension scheme while the other 3.67% is contributed to the PF scheme.
So, for an employee out of the 12% (employee contribution) + 12% (employer contribution) = 24%, it is 12% + 3.67% = 15.67% that gets contributed to the PF, while the other 8.33% gets contributed to the employee pension scheme (EPS). If the 8.33% pension contribution exceeds Rs.1250/-, then this is capped at Rs.1250/- and the rest of the amount directed to the PF fund.
If the employee's monthly basic salary is less than Rs.15,000/- per month, then the PF contribution percentage would be based on the basic salary and also allowances deemed as part of the wages, with the same percentage principles mentioned above.
From India, Bengaluru
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SALARY SHEET CALCULATION.xls