04 July 2012
PF Wages is Basic+VDA+FDA+Lunch Allowance etc. Generally 12% of wages wages will be deducted from employees salary and same amount of 12% will be added by the employer.
Suppose.
Basic 6500 Less PF(12% ) 780 ------- Net Salary 5720 ------- Ur PF Contribution 780 Less 8.33% on 6500 541 (To ur Pension Fund) ----- Ur Balance amount in PF 239 Add Employer 12% Contribution 780 ----
So ur PF Contribution is 780/- (12% of 6500/-)+ Employer PF Contribution is 780. And Our of ur contribution 8.33% of 6500 i.e 541 goes to ur Pension Fund. Rest of ur contribtion i.e, 3.67% (Rs.239)and Employer Contribution to u i.e.12% (780) put together Rs.1019/- goes to ur Provident Fund Account.
I hope ur PF Salary is 13000/- in which Basic is 6500 and u may be paid DA or (VDA + FDA) and Lunch Allowance.
If ur PF Salary is 10000/- ( UR PF deduction is 1200/- and employer PF Contribution is 1200 and out of 2400, Rs. 541 ( 8.33% of Rs.6500) goes to ur pension fund and rest of 1859 goes to ur Provident Fund.
Note: If PF Wage is more than 6500/- an amount of 541 (i.e, 8.33% on 6500) only goes to Pension fund.
If u have any doubts pl provide ur wage components, i will clarify ur doubts.
CAclubindia
