PF Deduction

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This discussion clarifies how Provident Fund (PF) contributions are calculated. While some companies deduct 12% of basic salary, others use complex formulas based on gross salary and HRA, especially if the gross is below a certain threshold. The general consensus is that PF is typically calculated on basic salary plus Dearness Allowance (DA), but it's always best to check your specific company's policies for accurate information.

PREMNATH

PREMNATH (Querist)
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21 July 2020 Sir

In a salary slip from which amount should the PF deducted. Is it 12% of Basic salary or Is it
12% of Gross salary. In our Company we calculate as follows:
Gross minus HRA* 12% if Gross amount is less than Rs 15000. If Gross is more than or equal to 15000 Rs 1800 is deducted. But in many companies payslip I find that PF is calculated on Basic salary.
Which one is correct. Thanks in advance.