PF contribution; do we have to calculate the PF on other components also or only on Basic?

Hi Team,
We are deducting PF for our Employees on their Basic and for all Employees, Basic is minimum 15,000/-.

what if the employee is absent or new joiners and Basic is less than 15000, do we have to calculate the PF on other components also or only on Basic?
Please suggest.

2 Likes

Hi

It is always better to make it 70% of the Gross to Basic for a safer side for calculating Pf for those having less than 15K

2 Likes

Hi,
yes, we understand this, but when the Employees joined and on prorate basis their Basic become less than 15k, so in that case, do we need to consider only Basic or we have consider other components also for PF calculation

3 Likes

Hi
Only the Basic and the Basic u can make it 70% of the Gross.

2 Likes

We fixed the Basic percentage to 50% of Monthly CTC.
we are facing the problem when the Employees are present only few days and based on Prorate, Basic is going below 15000, in this case, we are deducting PF on only Basic.
Is this correct?

2 Likes

At least 50 percent of the gross salary should be given PF.

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