Ashish Murarka (Service) 15 November 2009

PF

I want to know about the full details of Providend Fund?

How it is deducted?

At what rate it is deducted?

Does it deducted only on Basic Salary?

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3 Replies

Raj Kumar Makkad (Adv P & H High Court Chandigarh) 15 November 2009

wherein 20 or more persons work in an institution without help of electricity or 10 with electricity, that institution is covered under EPF & MP Act and decution is made over the wages of the subscriber calcualted on basic, DA, Retaining allowance, food concesion, if any subject to maximum 6500/- and at present the rate of duduction is 12%.

Ashish Murarka (Service) 16 November 2009

Suppose, Basic Salary is Rs 6500/-per month.

Dearness Allowance is Rs 1000/- per month

How much PF will be deducted by the employer from employee & How much does employer pay on behalf of the employee??

What is the rate of Interest for PF amount?

ca prabhakar (Proprietor) 29 November 2009

PF shall be calculated on total Rs 7500/-

Employee Contribution shall be 12% of Rs 7500/- Employee can pay more than 12% under voluntary contribution.

Employer Contribution shall be 12% of Rs 7500/-. However, 8.33% of Rs. 6500/- shall deposited under pension fund and balance shall depsoited under PF contribution.

Employer shall also pay total 1.61% of Rs. 6500/- as administration exp.

Pl. note that 6500/- is limit under PF Rules. for calculating Pension & adminstration charges.

At present interest rate is 8%.

CA Prabhakar gupta

9810093637

caprabhakargupta@rediffmail.com