How the PF is calculated?
To calculate your provident fund contribution, add both employer and employee contributions. The employer contributes 12\% towards the PF balance, whereas the employee contributes 3.67\% towards the PF balance. The employer’s contribution of 12\% towards the PF balance depends on the employee’s basic pay.
Is PF deducted every month from salary?
According to the EPF scheme rules, the employee contributes 12 per cent of basic wages plus dearness allowance from his salary every month towards his EPF account, and the employer matches the contribution of 12 per cent. So, in total, 24 per cent of the employee’s pay goes towards his/her EPF account.
How does PF deduction work?
According to the EPF rules, 12 percent of your salary must go towards your provident fund. Your company is also required to contribute the same 12 percent, out of which 8.33 percent of the salary is directed towards the Employee Pension Scheme or EPS. The remaining 3.67 percent are put into your EPF.
How much PF amount is deducted?
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. 15,000 salary, i.e. Rs.
How many times is PF deducted from salary?
For EPF, an employee contributes 12 per cent of the basic salary while the employer contributes 8.33 per cent towards Employees’ Pension Scheme and 3.67 per cent to employees’ EPF.
What is EPF interest rate?
The decision will affect over five crore subscribers of the Employees Provident Fund Organisation. The government has approved 8.5\% rate of interest on employees’ provident fund for the 2020-21 fiscal, a source said.
What is the PF percentage in salary?
How monthly PF 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.
Is gratuity part of CTC 2021?
Gratuity is a part of CTC and employee benifit for termination before completing 5 years – CiteHR.
How is PF calculated from salary?
What are the basic PF deductions?
The basic PF deductions rules are given below: EPF act applies to factories and establishments having 20 or more employees. All employees earning basic salary + DA + Retain allowance upto Rs. 15000 p.m are eligible for PF. Employee & Employer contribution is 12\% each of Basic salary +DA+ Retain allowance.
How much of my salary is deducted from my PF?
, Finance Writer. The EPF, popularly known as PF is made by yours and your employer’s contribution which is in most cases 12\% of your salary. This means 12\% is deducted from your salary and equal amount to 12\% of your salary is submitted by the employer from their side.
How much of my salary is deducted from my salary?
This means 12\% is deducted from your salary and equal amount to 12\% of your salary is submitted by the employer from their side. Every organization with 20 or more employees have to register for EPF and compulsorily deduct EPF and submit it with EPFO for all its employees who are covered under the EPF umbrella.
What is the maximum amount of PF deduction in India?
The maximum amount of PF deduction is 1800 Rs, it is calculated on maximum PF contribution limit of 15000 Rs. How much EPF is deducted? 12\% of employee basic wage + dearness allowances will be paid as a monthly contribution towards PF and at the same time employer will also pay another 12\% PF contribution.