How To Calculate PF Of Basic Salary More Than 15000

By | June 2, 2017

As we all know that every employee who is getting a salary of 15000 Rs or less than 15000 Rs will come under EPF scheme. Earlier this limit was 6500 Rs but after some amendments this limit was increased to 15000 Rs.  So whenever there is less than salary of 15000 Rs then PF calculation is not a problem,  but there are so many queries regarding how to calculate PF of basic salary more than 15000 Rs.

Cases When  We Need To Calculate PF Of Basic Salary More Than 15000

In some cases employers will so willingness to pay PF contributions to employees whose basic + DA is more than 15000 Rs. In those cases we need to do these kind of calculation. But before going to learn how to calculate PF of basic salary more than 1500 we have to learn some basic concepts of PF contribution percentages.

Read : How To Withdraw PF Without AAdhaar Card

How To Withdraw PF Online

What are the PF contribution percentages:

Most of the EPF contributors are not aware that PF contribution is divided in to two parts, they are provident fund and pension contributions. As per provident fund act 1952, 12% of employee basic salary will goes to provident fund account of employee. Now employer also need to pay same 12% contribution to EPFO but in this 12%, 3.67% will go  to  employee provident fund contribution and remaining 8.33% will go to pension fund of employee.

Employer also needs to pay 0.65% of admin charges ( earlier it was 0.85%) , 0.5% Employee Deposit Linked Insurance Charges ( EDLI ). So total contribution  of employer is 3.67% + 8.33% + 0.65% + 0.5% = 13.15 %

PF Contribution Percentages

Employee 12% Provident Fund Contribution
Employer 3.67% Provident Fund Contribution

8.33% Pension Contribution

0.65% Admin Charges

0.5% EDLI Charges

PF Calculation On Basic Salary Of Employee Is Less Than 15000 Rs

How To Calculate PF Of Basic Salary More Than 15000

Always PF will be calculated on basic salary + Dearness Allowances (DA) of employees. Here we will taken an example of an employee whose basic salary is 8000 Rs, then his and employer contributions will be followed as :

Employee PF Contribution 12% Employer Contributions
12% of employee basic

salary =  960 Rs

PF Contribution 3.67 % = 294 Rs

Pension Contribution 8.33% = 666 Rs

Admin Charges 0.65 % = 52 Rs

EDLI Charges 0.5% =  40 Rs

How To Calculate PF Of Basic Salary More Than 15000

Now we are going to learn how to calculate PF of basic salary more than 15000 Rs. But before calculating PF on basic salary and DA, we should remember that pension wage must be always 15000 Rs or less than 15000 Rs only. Similarly EDLI wages of employee also must be taken as 15000 of less than 15000. But provident fund calculation will be done on actual basic salary.

Example : If an employee’s basic salary is 18000 Rs, then we have to calculate pension and EDLI on only 15000 Rs.

Employee PF Contribution 12 % On 18000  = 2160

Employer Pension Contribution 8.33% On 18000  = 1250

Employer PF contribution = 2160-1250 = 910 ( Here we don’t take 3.67% )

Note : When you use ECR excel it will be calculate automatically. We just need to enter basic salary of employee.

Click Here To Down Load UAN Based ECR Format

3 thoughts on “How To Calculate PF Of Basic Salary More Than 15000

  1. Rohann

    Hello Sir,
    I have worked for 7 years and 11 months in same company. Now I am going abroad permanently and plan to apply for pf full and final settlement.

    My question :
    1) How much will be my Total “Pension” contributions in my PF if my last drawn basic salary is 11,400.

    2) Forms to fill to with draw “Pension” contributions.

    Thank You ..

    Years of service Proportion of wages at exit
    1 1.02
    2 2.05
    3 3.10
    4 4.18
    5 5.28
    6 6.40
    7 7.54
    8 8.70
    9 9.88

    1. Rajesh Post author

      Hi Rohann,
      It is not possible to calculate how much pension amount you have in your PF account because your basic wage may vary in every year and PF rate of interest also varies every year. You can check this in your PF passbook.
      You have to submit EPF composite claim forms or PF form 10c and form 19 to withdraw your PF and pension.


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