Dear All,
I need a clarification on PF calculation on a wage ceiling case.
Let’s say a person joined an organization on 15th May and opted for the maximum PF contribution of 1800 (15000 * 12%). His basic salary is 50,000 per month.
In this case his basic salary for the month of May is Rs.27419 (50000/31*17).
So my doubt is whether we need to calculate the PF based on 15000 or on the amount 15000/31*17.
i.e., 1800 or 987 (8226 * 12%).
Please advise.