What Is Basic Salary For PF?

How is PF 2020 calculated?

The interest calculation on the EPF of the employee is explained by the given example.

The employee provident fund interest rate for FY 2019-2020 is 8.50%.

the interest applicable per month When calculating interest, is = 8.50%/12 = 0.007083%..

How is PF calculated in CTC?

Salary (CTC) calculation: Under CTC model, if the monthly EPF wages of an employee is Rs 10,000, then he/she will get Rs 200 more directly from the employer as the share of the employer’s contribution to EPF/EPS will be reduced and Rs 200 less will be deducted from his/her wages.

Why PF is deducted twice from salary?

If the salary is mentioned as CTC, the employer PF amount only will be given in the offer letter. Employee PF amount will not be shown and it will be deducted from the salary. so it is logical only. CTC means cost to the company which is given by the company employee deductions to be not given.

How is PF calculated on minimum wage?

PF calculation: Since the employee’s Basic is above Rs 6,500, the stipulated ceiling for mandatory PF Gross, his PF contribution can be calculated as 12% of Basic i.e. Rs 1,200 in this case. Salary: An employee receives Basic pay of Rs 3,000 per month and Rs 3,000 under Special Allowance.

How is PF total calculated?

To understand methodology employed in the ET EPF Calculator, let us take the following case:Employees’ Basic Pay + DA: Rs 50000.Employee contribution towards EPF: 12%*50000 = Rs 6000.Employer contribution towards EPF = 3.67% of 50000 = 3.67%*50000 = Rs 1835…. (More items…•

How much PF can I withdraw?

According to the amended rules, a member can withdraw an amount equal to three months of basic salary and dearness allowance (DA) or 75 per cent of the credit balance in the account, whichever is lower for them. Here’s how to withdraw from your EPF corpus and how much you are allowed to withdraw.

Who is eligible for PF?

Employees drawing less than Rs 15,000 per month have to mandatorily become members of the EPF. However, an employee who is drawing ‘pay’ above prescribed limit (currently Rs 15,000) can become a member with permission of Assistant PF Commissioner, if he and his employer agree.

What is PF loan?

Contributions made towards the EPF scheme helps employees to withdraw a good amount of money in a lump sum at the time of their retirement. However, employees are allowed to make partial withdrawals during the course of their employment and the money can be used as a loan in case of financial emergencies.

What is CTC salary?

Cost to company (CTC) is a term for the total salary package of an employee, used in countries such as India and South Africa. It indicates the total amount of expenses an employer (organisation) spends on an employee during one year. … Employees may not directly receive the CTC amount.

How is PF percentage calculated?

– If you are a man, you must contribute 10% or 12% of your basic salary. – In case you are a new woman employee, it is 8% of your basic salary for the first 3 years. Thereafter, it becomes 10% or 12% of your basic salary. – Your employer has to contribute an amount equal to 10% or 12% of your basic salary towards EPF.

How is PF calculated from basic salary?

Calculation of PF PF contribution has to be made both by the employees and the employer. The contributions get accumulated in the provident fund in the name of the employee. The contribution of the employer is 12% of the basic wage plus dearness allowance or DA. The employee makes an equal contribution.

Is PF included in basic salary?

The employer, typically, deducts 12% of your basic salary and dearness allowance towards EPF contribution and contributes an equal amount. However, employers can limit the PF deduction to 12% of ₹15,000 even if the basic salary is higher.

Is PF mandatory for salary above 15000?

It is mandatory for an organisation employing more than 20 people to register with EPFO. While contributing towards EPF is mandatory for those earning basic wages of up to Rs 15,000. Those earning basic wages more than 15000 per month, EPF contribution is not mandatory.

What is the ESI limit in salary?

Rs.21,000COVERAGE UNDER THE ESI ACT, 1948 The existing wage-limit for coverage under the Act, is Rs. 21,000/- per month (with effect from 1.01. 2017).

What is the salary limit for ESI 2020?

Rs. 21,000 per monthAll employees of a covered unit, whose monthly incomes (excluding overtime, bonus, leave encashment) does not exceed Rs. 21,000 per month, are eligible to avail benefits under the Scheme. Employees earning daily average wage up to Rs.176 are exempted from ESIC contribution.