Statutory Deduction-PF

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This query is : Resolved

Dinesh (Querist)

23 March 2026 Sir,
Please see the below case .if a person salary is as below.

Basic 25000 PF 3000
Other Allowance 50000 PT 200
Gross Salary 75000 Net Pay 71800

If a person is absent for 15 days no leave on account in that case he will get salary as under

Basic 12500 PF 1500 or PF 1800
Other Allowance 25000 PT 200
Gross Salary 75000 Net Pay 35800

in this case PF Should be 1500 or 1800 because his master rate of Basic is more than 15000/-pm

Please confirm.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

24 March 2026 The rule you’re referring to is that if the monthly Basic exceeds ₹15,000, PF contribution is mandatory. In this case, the master rate of Basic is ₹25,000, which is above ₹15,000. However, PF is always calculated on the actual Basic earned for that month, not the master rate.
Therefore, for half-month Basic of ₹12,500, PF should be ₹1,500, not ₹1,800.
The confusion arises because eligibility for PF is based on the master rate (since it’s above ₹15,000, PF applies), but the contribution amount is always on actual Basic earned.

Would you like me to also show you how this calculation would look if the company applies fixed PF on full Basic (₹25,000) regardless of attendance? Some organizations do that, and it changes the net pay significantly.

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