HI,
I am posting this question as I want to understand how is the PF contribution calculated. My idea is that it is calculated as 12% of basic which is same for both Employees and employer contribution.
However, my employer is showing 1950 as PF contribution from my CTC. I have 2 questions here.
1. how did they arrive at number 1950? is their a clause / formula in EPFO scheme or company laws or anywhere where it is mentioned? I could not find any such information in EPFO portal. My basic is well above 15000 limit so this concerns me.
2. I checked and found that they are submitting Rs 75 as Admin Charges and Rs 75 as EDLI charges but it is part of my CTC. Is that a correct way to do or Rs 150 which is additional charge should not be a part of the employee’s CTC and should be an expense head in the profit and loss of the employer’s balance sheet?
please clarify?
CAclubindia
