Provident Fund Details

The Provident Fund contribution is employee's 12% of his/her basic salary. The employer also has to contribute their part for the employee provident fund.

For Provident Fund Calculation:
The maximum limit for the PF calculation would be 6500 on to an employee's basic. 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.

A/c No 1: PF contribution Account
A/c No 2: PF Admin account
A/c No 10: EPS account
A/c No 21: EDLIS account
A/c No 22: EDLIS admin account

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 payment for employer would be 13.61% of basic
Payment for employee would be 12% of basic

Employee's payment of 12% of the basic completely goes to the PF account.
Employer's Payment of 8.33% goes to Pension fund and 3.67% goes to PF fund.

Hi,
As far as i understand PF is calcualted as 12% of basic salary and this is government rule.
Look at my blog to get more details.
indiansalaryslipsimplified.blogspot

Dear All
I am enclosing the latest calculation for your reference:-
A/C 1 (Provident Fund Employee's Contribution @ 12%)
A/C 1 (Provident Fund Employer's contribution @ 3.67%)
A/C 2 (Administration Charges @ 0.85% or (minimum) Rs.500/- whichever is more)
A/C 10 (Pension Fund Employer's Contribution @ 8.33%)
A/C 21 (Employee's Deposit Linked Insurance Employer's Contribution @ 0.50%)
A/C 22 (Administration Charges @ 0.01% or (minimum) Rs.200/- whichever is more)
Please see A/C 2 and A/C 22 , the minimum limit.