How PF contribution is calculated?
How PF contribution is 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 much is PF contribution?
EPF Contribution
| Contribution by | Monthly Percentage Contributed |
|---|---|
| Employer | 12% |
| Employee | 12% or 10% |
| Total | 24% |
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 mandatory 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.
Is PF mandatory for salary above 21000?
Under the current rules, any company with more than 20 employees must register with the EPFO and the EPF scheme is compulsory for all employees earning less than ₹15,000. The increase in the limit to ₹21,000 will bring more workers under the retirement scheme.
What is current PF limit for salary?
15,000 from an employee’s salary every month. The EPF contribution is either 12% of Rs. 15,000 or 12% of (Basic Salary + Dearness Allowance, if applicable). The upper limit of EPF contribution every month is 12% of Rs.
What is minimum salary for PF?
₹15,000 a month
To be applicable for EPF, one needs a basic pay of less than ₹15,000 a month. To be applicable for EPF, one needs a basic pay of less than ₹15,000 a month.
What is the salary limit for PF 2021?
Generally, 12% of your salary is counted as your contribution to a PF. So, if your monthly basic salary is up to ₹ 1.75 lakh, your monthly contribution to the PF would be a maximum of ₹ 20,833 or ₹ 2.5 lakh in a year. Till this limit, the entire balance in your PF account remains tax-exempt.
Is PF mandatory for salary below 15000?
EPF deduction is mandatory for employees who draw a salary less than Rs 15,000, but others can opt-out of this scheme through a declaration made in Form 11 of EPFO.