How much PF is cut in 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 much PF is cut?

Out of the 12% contribution, 8.33% goes towards the Employee Pension Scheme Account, and the remaining 3.67% goes to the employee EPF account. It is compulsory for all employees who draw a basic salary of less than Rs 15,000 per month to become members of the EPF.

How is PF salary calculated?

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 calculated in CTC?

Provident Fund-A portion of the salary gets deposited in the PF account of the employee. Employer and employee together contribute to the contribution. The contribution to the PF account is 12 per cent of the basic pay.

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

Is PF mandatory for salary below 15000?

If you are an employee with a basic + expensive allowance of less than 15,000 rupees per month, it is compulsory for you to open an EPF account by your employer.

What is the new PF rules?

Employees Provident Fund (EPF) contributions exceeding ₹ 2.50 lakh yearly will be taxed from today, i.e., April 1, 2022. That limit has been set for government employees at a higher end of ₹ 5 lakh. With the new rules, the centre aims to prevent high earning people from taking advantage of government welfare schemes.

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.

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.

Is PF mandatory for salary above 35000?

Yes it is mandatory to deduct PF in the aforesaid case.

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.

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.

How much PF will I get on 20000 salary?

According to experts, if your basic pay is Rs 20,000 and EPF is deducted at a rate of 24% (12% Employee + 12% Employer) from the age of 25 years, you will be investing Rs 4800 every month. If you invest consistently for 25 years, you can retire with more than Rs 2 crores.

What is the PF for 20000 salary?

If the total of your basic salary and allowances is ₹20,000, your contribution towards EPF would be ₹2,400. Your employer contribution towards EPF will be ₹2,400 if you became a member of EPFO after September 2014.

What is 15000 limit in PF?

EPF Limits

15,000 each month is sectioned and contributed towards the Employees' Pension Fund. A payment of 0.5%, of the total wages amounting to a maximum of Rs. 15,000 has to be done by the employer every month, against the Employees' Deposit Linked Insurance Scheme.

Why PF is 12% of basic salary?

Employees usually contribute 12% of their basic salary while the employer makes a contribution of 13.61% towards the EPF. EPF is an retirement investment plan opted by a number of employees as this has number of benefits.

What is the PF for 10000 salary?

For example, if your monthly basic and DA is ₹10,000, both you and your employer will contribute ₹1,000 each instead of ₹1,200 each to the EPF account. You would, therefore, get ₹400 more (both employer's and employee's contribution) as in-hand salary. The labour ministry has issued a statement clarifying this.

Is PF mandatory for salary above 40000?

PF is not exempt for those drawing salary beyond 15,000. They are exempt only if they join your organisation at a salary of above 15,000 and does not have any PF account at the time of joining, and also they opt for being exempt.

How much PF is deducted from 40000 salary?

Employee's contribution towards EPF (12% of Rs. 40,000): Rs. 4,800.

What is the CTC for 30000 salary?

If your salary is 30000 Rs per month, then your salary structure will consist 50-60% basic wage, 40% HRA (for non metro cities) and 50% (for metro cities), 1600 Rs for conveyance allowance, 1250 Rs for medical allowances, and remaining amount will be included in other allowances (or) special allowances.

What percentage of CTC is PF?

Presently, 12 per cent of your basic salary now goes to PF. When the basic salary becomes 50 per cent of the CTC, the contribution to the PF will also increase. For example, for a person with a monthly CTC of Rs 20,000, Rs 10,000 will be the basic salary and Rs 1,200 will go to the PF account.

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.

Can I take salary without PF?

An employee can opt out of the provident fund if the following criteria are met: If he/she is a first-time employee i.e., at the time of joining the first job. The employee has his or her Basic + DA (PF Wages) more than Rs. 15000/- per month.