Provident fund calculation

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Sabareesh (Querist)
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28 January 2014 EDLI charges are supposed to be calcualted on pensionable salary or BASIC + DA?

For e.g.
Basic-7000 DA-3000
EDLI will be:
a) 10000*0.5%= 50 or
b) 6500*0.5%= 32.5

In the same manner, on what amount Admin charges and EDLI admin charges are to be calcualted?

@VaibhavJ

@VaibhavJ (Expert)
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28 January 2014 Hi

You have to calculate on 6500 i.e. max contri is 32.5

Thx

@VaibhavJ

@VaibhavJ (Expert)
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28 January 2014 Yo may refer:

https://www.caclubindia.com/forum/pf-
calculator-276660.asp

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Sabareesh

Sabareesh (Querist)
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29 January 2014 Sir,
On what amount Admin charges and EDLI admin charges are to be calculated? Basic + DA or pensionable salary?

Sabareesh

Sabareesh (Querist)
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29 January 2014 Thanks for sharing the file. It was crystal clear now.

But,
Sir,
If there is a company policy stating that if the basic + DA is less than 6500 then the company would add the washing allowance to it so that it will exceed 6500 and they will calculate the pf on 6500.

For e.g
1.Basic + DA - 6400
washing allowance - 200
both together - 6600 which is > 6500..so calculate PF on 6500

2.Basic + DA - 6000
washing allowance - 200
both together - 6200 which is still < 6500..so calculate on 6200 only.

Can they have such a policy? Is it inline with Law/ Act?

@VaibhavJ

@VaibhavJ (Expert)
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29 January 2014 HI

Washing Allowance is not to be considered for PF contribution.

Thx

Sabareesh

Sabareesh (Querist)
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29 January 2014 Sir,
The company is also adding performance allowance, conveyance to BASIC + DA? Is it correct if they add all these except washing allowance?

@VaibhavJ

@VaibhavJ (Expert)
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29 January 2014 Hi

As per PF rule only Basic + DA to be added.

Thx

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