As per my knowledge, there are 2 types of PF deductions. First, 12% of basic & minimum contribution which is 12% of 15000 (PF wages). Currently im prorating the 1800 contribution For example: if no. of days paid is 18 for december, then 1800x18/31=1045.
I need a clarification on the above. One of friend informed me that, if basic is more than 15000, than no need of proration for 1800, irrespective of no. of days.
From India, Bangalore
I need a clarification on the above. One of friend informed me that, if basic is more than 15000, than no need of proration for 1800, irrespective of no. of days.
From India, Bangalore
Hi Mr.Vishwas,
Basic is one of the component of wages and determined in certain % of total wages. For example If an employee salary is 14,000 Rs and his/her Basic 50% of Salary than Basic is 7,000 Rs. If an employee is paid for 15 days than his/her salary is (14,000*15/31) Rs 6774 than Basic 50% is (6774*50%) Rs-3387 hence you have calculate PF contribution for Rs-3387.
With Regards
Mr.Thumbs Up
From India, Chennai
104Basic is one of the component of wages and determined in certain % of total wages. For example If an employee salary is 14,000 Rs and his/her Basic 50% of Salary than Basic is 7,000 Rs. If an employee is paid for 15 days than his/her salary is (14,000*15/31) Rs 6774 than Basic 50% is (6774*50%) Rs-3387 hence you have calculate PF contribution for Rs-3387.
With Regards
Mr.Thumbs Up
From India, Chennai
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