How must we count days for provident fund contribution?
I am working in an engineering manufacturing firm in Pune an we need to revise our salary and wage structure for 2012-13 financial year according to all the applicable acts. As such, I am interested to know whether PF is calculated on the basis of the present days of the worker or the full working days of the firm?
From United States
, New York
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
PF is calculated upon basic salary. At present its 12% employee contribution and 12% employer contribution. Paying PF by the employer is mandatory under law. There is no such thing that it has to be calculated based on working days, But PF eligibility the employee must have drawn his atleast one month salary.......
That is if his Basic pay is 15000, then PF = 15000 multiplied 12% = 1800/- is the PF amount.
(Gross salary is not the basic salary!! between 30 to 60% of gross salary will be the basic pay, that would be decided by the company, whether 30% or 45% or 50%, but it has to be not less than 30% and more than 60%)
I suggest you to refer EPFO website for more accurate details and for further processing.......
All the best........
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