Salary components for EPF Contribution
This query is : Resolved
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05 December 2020
Hi Everyone,
We have bifurcated salary in below components:-
Basic Salary
HRA
Conveyance Allowance
Special allowance
But while calculating EPF contribution, we are adding Basic Salary, Conveyance allowance and special allowance and we are deducting 12% from this amount as employee contribution but if it crosses limit of 15000/- as per EPF then we are deducting 12% on maximum of Rs. 15000/-.
Please advise is it the right way of doing deduction for EPF.
Thanks
We have bifurcated salary in below components:-
Basic Salary
HRA
Conveyance Allowance
Special allowance
But while calculating EPF contribution, we are adding Basic Salary, Conveyance allowance and special allowance and we are deducting 12% from this amount as employee contribution but if it crosses limit of 15000/- as per EPF then we are deducting 12% on maximum of Rs. 15000/-.
Please advise is it the right way of doing deduction for EPF.
Thanks
05 December 2020
Yes, it is the right way of doing deduction for EPF.
05 December 2020
Dear Sir,
Thank a lot for quick response.
Can we continue with 'special allowance' component in salary but will deduct EPF as already conveyed in last query.
Thank a lot for quick response.
Can we continue with 'special allowance' component in salary but will deduct EPF as already conveyed in last query.
05 December 2020
Yes , you can do it case law favours it.
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