In a salary slip from which amount should the PF deducted. Is it 12% of Basic salary or Is it 12% of Gross salary. In our Company we calculate as follows: Gross minus HRA* 12% if Gross amount is less than Rs 15000. If Gross is more than or equal to 15000 Rs 1800 is deducted. But in many companies payslip I find that PF is calculated on Basic salary. Which one is correct. Thanks in advance.
CAclubindia
