P f contribution
Venkattaraman Arthanari
(Querist) 22 October 2011
This query is : Resolved
Dear Learned Members,
We are paying salary to our employees as per the details given below:
Basic inclusive of DA is 50% and HRA 50%
At present we are deducting 12% from the employees as their contribution from their Basic and DA which is 50%to wards EPF Contribution.
e.g. salary 7,000/-per month
P F calculated 50%of gross i.e.3500x12% =420/-. Where as the P F authorities says we have to calculate PF as follows:
Basic is 4900(70%) and HRA is 2100(30%) and the PF contribution is 588
PF Authorities insists us to pay the
contribution on 70% on Basic pay.
In the EPF act no where it specifies that we have to pay 70% as basic.
I kindly request the learnerd scholars to give your expert advise on the above subject.
K.S.Srinivas
(Expert) 28 October 2011
EPF contribution by the employer is 12.00% on the pay + DA which is limited to Rs.6,500
