How is PF calculated in salary?

The employee contributes 12 percent of his or her basic salary along with the Dearness Allowance every month to the EPF account. For example: If the basic salary is Rs. 15,000 per month, the employee contribution shall be 12 % of 15000, which comes to Rs 1800/-. This amount is the employee contribution.

How is PF total amount calculated?

Calculation of EPF

Contribution made by the employee equals 12% of his/her Basic Pay plus Dearness Allowance (DA). When the Basic Pay + DA is less than or equal to Rs 15000, the employee contribution is 12% of Basic Pay + DA, whereas the employer contribution is 3.67% of the Basic Pay + DA.

How much PF is deducted from monthly salary?

Employee contribution to EPF: 12% of salary. Employer contribution to EPF: 3.67% of salary. Employer contribution to EPS: 8.33% of salary subject to a ceiling of Rs.

How is PF calculated in Excel?

Lets say your salary (Basic Salary + Dearness Allowance) = Rs 50,000 per month. Now following are the contributions made by you (employee) and the employer: Employee's contribution towards EPF = 12% of Rs 50,000 = Rs 6000. Employer's contribution towards EPS = 8.33% of Rs 50,000 = Rs 4165.

Is PF mandatory for salary above 15000?

If you are drawing a salary higher than Rs. 15,000 per month, you are termed a non-eligible employee and it is not mandatory for you to become a member of the EPF, although you can still register with the consent of your employer and approval from the Assistant PF Commissioner.

EPF (Employee Provident Fund) – Calculation, Withdrawal Rules, Interest Rate

Can I withdraw full PF amount?

The new rules state that PF account holders can withdraw money equivalent to three months of their basic salary plus dearness allowance or 75 percent of the net balance in their PF account, whichever is lower.

How is PF deducted from CTC?

In Cost to Company (CTC) model, if ₹10,000 is monthly EPF wages, the employee gets ₹200 more directly from employer as employer's EPF/EPS contribution is reduced and ₹200 less is deducted from his/her wages," it said.

Why PF is deducted twice from salary?

If the salary is mentioned as CTC, the employer PF amount only will be given in the offer letter. Employee PF amount will not be shown and it will be deducted from the salary. so it is logical only. CTC means cost to the company which is given by the company employee deductions to be not given.

What is the current PF rate?

The current EPF interest rate for the Financial Year 2021-22 is 8.10%. Moreover, the interest is calculated monthly but transferred to the Employee Provident Fund account only on 31st March of the applicable financial year.

Is PF calculated on gross salary?

Gross Salary is employee provident fund (EPF) and gratuity subtracted from the Cost to Company (CTC). To put it in simpler terms, Gross Salary is the amount paid before deduction of taxes or other deductions and is inclusive of bonuses, over-time pay, holiday pay, and other differentials.

Does PF include CTC?

CTC involves a number of other elements and is cumulative of House Rent Allowance (HRA), Provident Fund (PF), and Medical Insurance among other allowances which are added to the basic salary.

Is employer contribution 13% in PF?

Contribution by an employer: The contribution made by the employer is 13% of the basic salary and PF applicable allowances of the employee. However this 13% is further subdivided into: 3.67% of contribution towards Employees' Provident Fund.

Is PF amount double?

How will PF's money be double? If a person doubles his contribution, then his PF fund will also be doubled. If a person contributes only 12 percent as per the rules, it will increase to 24 percent. Interest on this amount will also increase.

How many days does PF claim take?

Normally it takes 20 days to settle a claim or release the PF amount, if the same is submitted to concerned EPFO Office in complete.

How to check PF balance?

If you have registered your UAN with EPFO (Employee Provident Fund Organisation), you can check your PF balance quickly by sending an SMS. All you need to do is send a text message to 7738299899. The text message should include 'EPFOHO UAN ENG.

How long PF claim takes?

How much time does it take for EPF withdrawal to be processed? After the withdrawal request has been duly submitted and approved by the employer, it takes around 15-20 days for the money to reach your bank account.

Why is PF 12%?

EPF (Employees' Provident Fund) is a retirement benefit scheme maintained by the Employees' Provident Fund Organization (EPFO). The employee and the employer contribute to the EPF scheme on monthly basis in equal proportions of 12% of the basic salary and dearness allowance.

Is 12 percent PF mandatory?

Currently, the mandatory monthly contribution by the employee stands at 12 per cent of the monthly pay which includes monthly basic pay, dearness allowance and retaining allowance, if any. As an employee, one is allowed to enhance the contribution to up to 100 per cent of the basic pay.

How is PF divided?

The 12% that is contributed by the employee goes into EPF. But it's the employer's 12% that gets split into multiple parts. One-third of the employer's contribution to the scheme i.e. 3.67% goes to the EPF. And the large chunk i.e 8.33% goes to the EPS.

What is minimum basic salary for PF?

There is no minimum salary for PF. PF is to be deducted even if the employee gets ₹ 1. However, you need to pay the minimum wages as per the state notification under minimum wages act. Once PF is paid for an employee, it continues to be paid irrespective of how high his salary goes.

What is the CTC for 25000 salary?

If you make ₹ 25,000 a year living in India, you will be taxed ₹ 3,000. That means that your net pay will be ₹ 22,000 per year, or ₹ 1,833 per month. Your average tax rate is 12.0% and your marginal tax rate is 12.0%.

What is the meaning of 15000 CTC?

“We are pleased to inform you that your total remuneration would be 1.8 lakh annual on the CTC basis”. These were the words written in the offer letter of TV18. I quickly calculated on the fingertips, it means 15,000/month. It was a good salary in 2004.

How is monthly salary calculated?

Multiply your hourly wage by how many hours a week you work, then multiply this number by 52. Divide that number by 12 to get your gross monthly income.