ASHOK KUMAR (MANAGER ACCOUNTS) (187 Points)
10 October 2022
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160692 Points)
Replied 10 October 2022
For PF deduction there are 4 rules as mentioned below:
1) 12 % of basic salary
2) 12 % of basic salary with 1800 cap
3) 12% Gross-HRA (all the fixed salary heads are included except HRA)
4) 12% Gross-HRA with 1800 cap (all the fixed salary heads are included except HRA)
sabyasachi mukherjee
(26197 Points)
Replied 11 October 2022
Ayush
(Executive )
(6232 Points)
Replied 27 May 2023
In a basic salary calculation, the Provident Fund (PF) is calculated by considering the Basic Wage and Dearness Allowances. The employee contributes 12% of their Basic Wage + Dearness Allowances towards PF, while the employer contributes 3.67% towards PF on the same amount. Additionally, the employer also contributes 8.33% towards a pension scheme for the employee.
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