PF Calculation
This query is : Resolved
10 September 2010
I wish to understand which allownaces can consider for PF calculation other than Basic & DA
CMA Ramesh Krishnan
(Expert)
10 September 2010
No, Only Basic and DA can be considered for PF calculation
10 September 2010
Only Basic & DA is considered for PF.
siddaramanna
(Expert)
10 September 2010
Contributions
The contribution envisaged under sec 6 read with notification dated 9th April 1997 and
para 29 of the EPF Scheme, specifies that the rate of contribution under the E.P.F. Act as
12%. The employer has to deposit 12% of the basic wages, dearness allowance and
retaining allowance (if any), on his part and an equivalent amount on behalf of the
employee, which is to be recovered from the employee’ salary (para 32 of EPF Scheme).
• For this section ‘dearness allowance’ shall be deemed to include the cash value of any
food concession allowed to the employee. The ‘retaining allowance’ means an allowance
payable for the time being to an employee for retaining his services, when the
establishment is not working.
The contribution envisaged under sec 6 read with notification dated 9th April 1997 and
para 29 of the EPF Scheme, specifies that the rate of contribution under the E.P.F. Act as
12%. The employer has to deposit 12% of the basic wages, dearness allowance and
retaining allowance (if any), on his part and an equivalent amount on behalf of the
employee, which is to be recovered from the employee’ salary (para 32 of EPF Scheme).
• For this section ‘dearness allowance’ shall be deemed to include the cash value of any
food concession allowed to the employee. The ‘retaining allowance’ means an allowance
payable for the time being to an employee for retaining his services, when the
establishment is not working.
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