# Special allowance & PF calculation

**URL:** <https://community.greythr.com/t/special-allowance-pf-calculation/2177>\
**Category:** Payroll\
**Tags:** pf, hr\
**Created:** [March 22, 2021, 8:56am UTC](https://community.greythr.com/t/special-allowance-pf-calculation/2177 "2021-03-22T08:56:30Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![Anisha](https://avatars.discourse-cdn.com/v4/letter/a/8dc957/32.png) [@Anisha](https://community.greythr.com/u/Anisha)\
**Post date:** [March 22, 2021, 8:56am UTC](https://community.greythr.com/t/special-allowance-pf-calculation/2177/1 "2021-03-22T08:56:30Z")

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Hi,

Does special allowance paid to employee fall under definition of salary for PF? If so, what are the details?

Please advise

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**Author:** ![Arpana](https://avatars.discourse-cdn.com/v4/letter/a/53a042/32.png) [@Arpana](https://community.greythr.com/u/Arpana)\
**Post date:** [March 22, 2021, 7:26pm UTC](https://community.greythr.com/t/special-allowance-pf-calculation/2177/2 "2021-03-22T19:26:44Z")

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Hi Ann,

Yes, there are 3 ways of calculating PF:

1. 12% on actual basic if basic is more or equal to Rs. 15000/-.
2. 12% on sealed wage, If basic is less than 15000/- but total salary including allowances is more than 15000/- minus HRA .
3. 12% on actual total salary including allowances minus HRA if basic and total salary is less than 15000/-.

I hope have answered your query.

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**Author:** ![Dinesh](https://avatars.discourse-cdn.com/v4/letter/d/a8b319/32.png) [@Dinesh](https://community.greythr.com/u/Dinesh)\
**Post date:** [April 1, 2021, 7:06am UTC](https://community.greythr.com/t/special-allowance-pf-calculation/2177/3 "2021-04-01T07:06:31Z")

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Hi @Anisha

Agree with @Arpana Special Allowance need not be calculated for PF right now.

But with wage code coming soon - SA needs to be re-looked once states come up with Draft rules.