PF contributions are deducted @ 12% of PF wages. In cases where PF wages is capped @ 15k, wish to ask the experts to confirm which is correct in following:
Full PF salary (Gross-HRA) - Rs. 30,000/-
Present days - 25
Earned PF salary (Gross-HRA) - Rs. 25,000/-
Case1 - PF Wages Rs. 15,000/- (least of Rs. 25,000/- & Rs. 15,000)
Case2 - PF wages Rs. 12,500/- (i.e. Rs. 15,000/30*25)
As far as I know, generally we go with Case1. However, PF consultant is advising to go with Case2
Can you please confirm if this is correct? Also can we get the exact supporting provisions in PF rules with reference to specific sections?