Pf contributions

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Sivaprasad (Querist)

01 June 2018 for pf calculation, salary comprises of ?
how much amount employer can contribute to PF account of employee?

RAJA P M

RAJA P M (Expert)

01 June 2018 Upto 1800 (15000 * 12# = 1800)

Sivaprasad

Sivaprasad (Querist)

01 June 2018 what is the salary comprises of ? for pf calculation

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)

01 June 2018 12 per cent of salary

Sivaprasad

Sivaprasad (Querist)

01 June 2018 ok sir,but what is salary=? (basic pay + allowances, likewise)

Sivaprasad

Sivaprasad (Querist)

01 June 2018 which allowance are included in salary for calculating pf 12% on salary

CA Suresh Jain

CA Suresh Jain (Expert)

01 June 2018 Definition of Basis Wages as per PF Act is as under :
(b) “basic wages” means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include-
(i) the cash value of any food concession;
(ii) any dearness allowance that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living, house-rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment;
(iii) any presents made by the employer;

It is 10% or 12%, as the case may be, of Basic Wages/salary. Where wages/salary exceeds 15000/- contribution payable by the employer, shall be limited to the amounts payable on a monthly pay of [six thousand and five hundred rupees] including [dearness allowance, retaining allowance (if any) and] cash value of food concession]

Employer can choose to pay higher contribution and also in respect of otherwise non-eligible employees. Employee can also choose to pay higher contribution

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