E.P.F.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2010 How E.P.F. calculate on salary.

Please tell me Brifly.

& Mention all PErcent below a/c no.

E.P.F A/c no. - 1
E.P.F A/c no. - 2
E.P.F A/c no. - 10
E.P.F A/c no. - 21
E.P.F A/c no. - 22

CA Sanat Pyne

CA Sanat Pyne (Expert)
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31 December 2010 The PF contribution is 12% of Basic salary from both employee and employer. For the calculation the maximum limit of Basic is Rs 6500/-. It means even if the employee's basic salary is above Rs 6500/- the employer is liable to contribute only on Rs 6500/-, that is Rs 780. However if an employee so desires he may voluntarily contribute more than 12%. Apart from it an employer also has to pay some administration charges. I explain you the various accounts of PF challan.
Employee Employer
A/c No 1: PF contribution Account 12 3.67
A/c No 2: PF Admin account 1.10
A/c No 10: EPS account 8.33
A/c No 21: EDLIS account 0.50
A/c No 22: EDLIS admin account 0.01
12 13.61

PF admin charge = Employer has to pay 1.1 % of basic
EDLIS: Employer has to pay 0.5% of basic
EDLIS admin charge :Employer has to pay 0.01% of basic
Total additional percentage employer has to pay: 1.61% of basic
So employer has actually to pay 13.61 % of Basic and employee has to pay only 12% of basic.
Employees complete 12% goes to PF account while employer contributions' 8.33% goes to Pension fund and 3.67% goes to PF fund.