PF Calculation

The definition for ‘Basic Wages’ given by the RPFC, Chennai regional office is attached for your reference please. Kindly go through the same and re-work your salary component if required. Since the EPF wage ceiling has been enhanced from Rs. 6500/- to Rs. 15000/- with effect from 1st September’ 2014, kindly note that whatever the salary you are going to shown, except in the below mentioned components (categories), will attract PF, for the limit up to Rs. 15000/-. • House Rent Allowance • Dearness Allowance • Case value of any food concession • Overtime allowance • Bonus • Commission “Section 2(b) “basic wages” means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include i. the cash value of any food concession; ii. any dearness allowance (that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living), house rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment; iii. any presents made by the employer;” Hence, we would suggest that, for employees getting less than Rs. 15000/- as gross wages, please avoid showing components in the heading like, ‘Travel Allowance, Special Allowance’ etc., to them, until get the clarity on components from the EPF department. Please write to us in case you are looking for any professional support in this regard. EPF Now Changed on Slap on 1st Sep2014 Per Month Per Month Salary Rs. 12,000.00 Rs. 15,000.00 Employee 12% Rs. 1,440.00 Rs. 1,800.00 Employer 13.61% Rs. 1,633.20 Rs. 2,041.50 Total 12% + 13.61% Rs. 3,073.20 Rs. 3,841.50 Employer to Pay Based Based This A/c No Rs. 12000 Rs. 15000 Acc.No: 10 8.33% Rs. 999.60 Rs. 1,249.50 Acc.No:1 3.67% Rs. 440.40 Rs. 550.50 Acc.No:21 0.50% Rs. 60.00 Rs. 75.00 Acc.No:2 1.10% Rs. 132.00 Rs. 165.00 Acc.No:22 0.01% Rs. 1.20 Rs. 1.50 Total 13.61% Rs. 1,633.20 Rs. 2,041.50


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