Pf deduction

PF has to be ducted on Basic+DA

Formula is if basic + DA is less than 6500 pf shall be 12% on Basic + DA

If Basic + DA is morethan 6500 no need to duct PF or 780 or as per companies policy

Dear Nitin ,

Rate of PF is at present 12% and the computation is usually on basic salary +DA

1. When the Basic Salary + DA does not exceed Rs.6500 then in such case it is mandatory on part of the

employer/org.  to deduct PF and deposit it  every month.

2. In case the Basic Salary + DA exceeds Rs.6500 then in such case:

 the employee has option to get his PF deducted from his salary. It means then its not mandatory.

Option to get PF deducted once exercised cannot be revoked till  the employee is in employment.

Regards,

CA Anu Bansal