Hi,
In my company 'basic pay ' is mimimum 4000 rs and max upto 6500. and PF is calculated at 12% of basic and equal contribution is made by employer-employee.
Please resolve my 4 queries:
4 PF calculation queries:
1. Pls provide some insight into the % or amount of "basic element' of salary.What is min to max range of 'Basic' element of salary for PF calculation.
2. If someone's basic pay goes above 6500 then should we calculate PF till 6500 or for total amount of basic.
3. What is the proportion of Basic and HRA elements in total salary.
4. Do the employee-employer have to deposit same amount of PF or the % of sumbission is different.
Regards
Gunjan
From India, New Delhi
39In my company 'basic pay ' is mimimum 4000 rs and max upto 6500. and PF is calculated at 12% of basic and equal contribution is made by employer-employee.
Please resolve my 4 queries:
4 PF calculation queries:
1. Pls provide some insight into the % or amount of "basic element' of salary.What is min to max range of 'Basic' element of salary for PF calculation.
2. If someone's basic pay goes above 6500 then should we calculate PF till 6500 or for total amount of basic.
3. What is the proportion of Basic and HRA elements in total salary.
4. Do the employee-employer have to deposit same amount of PF or the % of sumbission is different.
Regards
Gunjan
From India, New Delhi
I think the same question was answered many often.
It is not mandatory that the PF should be contributed only on a basic salary subject to a maximum of Rs 6500, but if the employees wishes that he should contribute on a higher amount, say, Rs 15000, he can do so. The percentage of 12 is the statutory minimum and if the employee wants to contribute a higher percentage he can do so. However, the employer can restrict his contribution to Rs 6500 and to 12%. If the terms of employment so requires the employer can also contribute higher percentage and on a higher amount. As such the employer's contribution and employee's contribution NEED NOT NECESSARILY be the same.
Regarding Basic salary and HRA proposition, there is no hard rule but it is decided according to the company's internal policies.
Regards,
Madhu.T.K
From India, Kannur
It is not mandatory that the PF should be contributed only on a basic salary subject to a maximum of Rs 6500, but if the employees wishes that he should contribute on a higher amount, say, Rs 15000, he can do so. The percentage of 12 is the statutory minimum and if the employee wants to contribute a higher percentage he can do so. However, the employer can restrict his contribution to Rs 6500 and to 12%. If the terms of employment so requires the employer can also contribute higher percentage and on a higher amount. As such the employer's contribution and employee's contribution NEED NOT NECESSARILY be the same.
Regarding Basic salary and HRA proposition, there is no hard rule but it is decided according to the company's internal policies.
Regards,
Madhu.T.K
From India, Kannur
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Salary Sheet & PF PT Calculation & Challan Nov 2010.xls