Provident Fund Deduction - Pf Deduction

Hi All,
I need some clarification:
PF amount of 24% Deducted every month from my Salary. If you ask, they say, it;s a part of the CTC.
On my payslip, only 12% of employee contribution is shown and rest 12% contribution will reflect in PF account.
Can you please tell me, if this is right way.
Thanks in Advance.
Regards
Rao

Dear Sir,
I want to know about the entire provident fund return filing.
i.e. from allotment of pf nos, form 5,10, 3A, 6A, chalan filling, etc upto submission of returns.
Can you please provide me a copy with formulaes in excel
Thank you in advance
Regards

As per the PF Act
if an employee is having basic + da more than 6500
contributions is yet to be made as
12% on the prescribed limit (which is 6500 for now)
Now the increase in contribution to be made as 12% on actual basic + da is a voluntary affair and one cannot force to contribute anything above 12% on 6500 = 780.
Trust i was able to answer your query

Hi Rajeev,

When it comes to EPF or Employee PF, we two side contributions -

1. Employee's Side: This is deducted from your salary i.e from your monthly gross. The minimum contribution as per PF Act is 12% and you can voluntarily scale it up to a maximum of 20%.

2. Employer's Side: This is not deducted from your salary. This is included in your CTC to show the transaction. (I shall explain how should it be refelcted). As per the PF Act, the employer is supposed to contribute a 12% of your Basic + DA to your PF&Pension Account. Out of this 12%, 8.33% goes to Pension Account and only 3.67% goes to the PF Account.

In addition to the 12% contribution made by the Employer, he is also liable to pay -

Administrative Charges - Handling for PF/Pension account

Employee Insurance Charge

Employee Insurance Handling Charge

However if the company provides some better insurance scheme, they can opt out of insurance scheme in PF act.

Now to see how the PFs should be reflected in your CTC-

Basic

DA

HRA

Conveyance

Medical Allowance

Other Allowances (if any)

=========================

GROSS

==========================

Gratuity (Calculated as 15/26 * 1 * Last drawn salary i.e basic + da and this amount is contributed to the gratuity account that the company has with some LIC or related firm)

PF (This is the employer's contribution)

ESIC (if applicable - again employer's contribution)

Annual Bonus

LTA (if provided by your company)

=============================

CTC (i.e. cost to company)

Now from your monthly gross -

Gross (basic +da + hra + conveyance + medical allowance + other allowances)

(less) PF (This is employee contribution)

(less) Professional Tax

(less) TDS

===================

MONTHLY IN-HAND

===================

So if you see that PF contribution can be deducted only once from your gross.

The PF that was mentioned in you CTC is very much correct as that amount is also deposited in your PF account.

I hope if this was the doubt it was cleared.

Please read further on the following link for discussion on similar query

https://www.citehr.com/455974-no-emp...#ixzz2POPwicji