Employees whose monthly salary (basic wage + dearness allowances) is 15000 or below are eligible for the EPF scheme. For employees whose salary is above 15000 then the PF contribution is calculated up to 15000 only.
If employee wants to contribute more amount then he can contribute under voluntary PF contribution, but employer doesn’t have any obligation to calculate PF contribution on increased salary.
PF Deduction on Salary above 15000
If the salary ( basic wage + DA) of an employee is 15000 from the starting date of his joining then it is not mandatory to deduct PF from his salary.
If the employee salary increases to above 15000 due to salary hike and if he is previously an EPF member then he should continue making PF contribution. And the PF is calculated on 15000 only.
For more details read this topic on Is It Mandatory to Deduct PF from Salary More than 15000
How to Calculate PF on Basic Salary More than 15000 in Normal Case
To calculate PF of basic salary of more than 15000 Rs follow the below calculation process. Here I have taken an example of an employee whose basic wage + DA is 18000 Rs. Lets see how PF is calculated on 18000.
| Basic Salary + DA | Employee & employer contribution on : 15000 Rs | |
| Employee PF Contribution | 12% | 1800 Rs |
| Employer PF contribution | 3.67% | 550 |
| Employer Pension contribution | 8.33% | 1250 |
If Employee wants Contribute Under Voluntary PF Contribution
If that employee wants to pay a voluntary PF contribution then the calculation will be like this. (Here employee contribution is calculated on 18000 and employer contribution is calculated on 15000)
| Basic Salary + DA | Employee Contribution on : 18000 Rs Employer contribution on : 15000 Rs | |
| Employee PF Contribution | 12% | 2160 Rs |
| Employer PF contribution | 3.67% | 550 |
| Employer Pension contribution | 8.33% | 1250 |
If Employer also Wants to Contribute Under Voluntary PF Contribution
In the above salary example, employee PF contribution is calculated on 18000 but employer pension contribution is calculated on 15000 (ceiling wage limit).
And employer PF contribution = (Employee PF contribution – Employer PF contribution)
⟣ Here we are not considering 3.67% calculation of employer PF contribution.
| Basic Salary + DA | Employee contribution on : 18000 Rs Employer pension contribution on : 15000 Rs | |
| Employee PF Contribution | 12% | 2160 Rs |
| Employer Pension contribution | 8.33% on 15000 /- | 1250 |
| Employer PF contribution | 2160-1250 | 910 |
Note: When you use ECR excel it will be calculated automatically. We just need to enter the basic salary of the employee.
Also Read
Dear Sir,
There is a confusion in calculating EPF contribution on basic salary.
1. It is very right that contribution of EPF shall be on Basic+ DA only. Is it mandatory to contribute EPF share on minimum 15000/- if the gross salary is more than 15000/- per month? for example Gross salary is 20000/- Breakup – basic -10000/- 50% of gross, TPTL- 1600/- , HRA- 6000/- 30% of gross and balance in SPL allowance- 2400/-, in this case what should be the deducting amount.
2. Is it mandatory to deduct EPF on full gross salary if gross is less than 15000/-.
Q:How much amount an employee can contribute valuntarily to PF account maximum?
Employee can contribute upto 12% of the basic wage.
For example if your basic wage is 30000 Rs you can contribute 30000 * 12% = 3600 Rs per month
I am having a UAN from EPFO and have left my job 18 months now.
I want to join a new establishment with salary more than 15000. I dont want to opt for PF deduction. But my employer says that since you have a UAN, either your PF will be deducted or you have to submit a affidavit regarding forego of any claim in PF and closure of UAN.
Kindly let me know how can I plan so that none of my PF is deducted.
we have given ctc to employees so ( employee and employer contribution of pf will be deducted form their salary ) if a n employee is getting 28000/pm how to calculate the pf?
Hello,
My basic salary is more than 15000 and I can see in my passbook that pension contributions is zero. Both 12% is going to employee and Employer PF contribution. Will it get pension in this case when I retire after 15 yrs ??? Do I need to do something to contribute to Employer Pension fund.
Thanks.
Employees salary is more than 15000/- pm i.e. Rs.35000/- PM and his contribution towards PF is Rs.1800/- i.e. @12 % on Rs. 15000/-. In case of 10 days deduction of salary due to absence of employee, what is the contribution towards PF. Is it Rs.15000/30*20=10000*12%= Rs.1200/- or something else.
My Basic is Rs. 45000 and my PF is being deducted on Rs. 15000 only i.e. Rs. 1800. During Nov month i remained absent for 15 days and my employer deducted Rs. 900/- PF only considering PF salary being Rs.15k irrespective of whatever higher my .basic. Kindly clarify, is it right or my employer wrongly deducted PF.
Your employer is doing right.
If your earned basic is below 15000 then only your PF contribution paid less otherwise it should be paid fully 1800
In PF calculation is this mandatory to consider only Basic + DA? or we may show as basic + HRA if we follow MW. From where only amount shown in basic the PF will be calculated as 12%. eg. if salary is Rs 15000/- breakup shown Basic Rs 5000/- and HRA Rs 10000/- and PF calculated on Basic which is Rs 5000/- is this calculation right.
Thanks in advance
If there is no DA, only the basic wage will be considered for PF calculation.
In your case, PF should be calculated on 5000 Rs. (5000 * 12% = 6000 Rs)
hello sir,
thank you for your last response , i have one more Query regarding the PF,
PF can calculated on the days if the person present 10 day and his basic salary not cross the
15000 rs the (in our organization we take the 4 component total to fulfill the condition basic+Conveyance Allowance+Supplementary Allowance+Advance Medical Reimb.)then he
fulfill the condition if he present 30 day the we directly calculate 1800 rs
if he present 10 day then we take the 15000/31(month)*10(present)*12%=580
Please suggest this calculation is right or wrong.
Your calculation is right.
But for PF you need to consider only basic wage + DA (if applicable).
Hi, sir
my basic salary is 27774 Rs. then how much pf should be calculat ?, my company directly calculated 12% of basic that is 3333 Rs. PF. this is right or wrong kindly explain.
Up to 15000 Rs of the basic wage, it is mandatory to pay PF for the companies, so 12% on 15000 is 1800 Rs
If your company is paying PF on a higher basic wage then it is good for you, because PF gives 8.10% interest, which is better than most safe investment options like PPF and FDs.
hi sir, if my company not ready to give pf to some workers, what can we do for adding pf..?
If your company has more than 20 employees then they have to provide PF for their employees, you better talk with them, if they don’t agree then you contact EPFO or the labour department office.
Hi Sir,
My salary is more than 15000 and deduction of PF is 2167 which is my contribution and i am unable to transfer this pf balance to my next member id and the reason showing that AGES IS MORE THAN 15000/ NOT AN EPS please guide me to transfer the my pf balance.
PF can be calculated on more than 15000 but pension should be calculated up to 15,000 wage only.
So better register a complaint on the EPF grievance portal, they will help you in transferring the PF.
If online transfer is not possible then you have to transfer your PF offline by using PF transfer form 13.
SIR,
Empoyee basic pais is 18000/- please suggsest how to caluculate the epf for employee and employer.
please reply.
HI Sir
I am parashuram jinarali I am employee in co op cr society
my salary is
basic 13600
Da 100% 13600
gross salary 27200
what will be the pf deduction from salary & employer
As per EPF rules, the PF amount will be calculated at a limit of 15000 Rs (basic+ DA). On 15000 PF deduction will be 1800 Rs and the same amount will be paid by the employer also.
But if your employer wants to pay PF for more than 15000 Rs then they can do that, but it is their choice.
Hi Rajesh,
I’m Srilakshmi, my basic pay + DA = 16100, could you please tell me how much amount i can get for working 6 months.
15000/- is the upper limit or can we pay PF amount more than 15000/- also.
please suggest
Yes, you can pay PF form more than 15000, it will come under voluntary PF contributions (you will get the same interest rate which is applicable for PF).
But your employer will not have any obligation to increase their PF contribution.
They will calculate their contribution to 15000 only.
there was any maximum limit for Pf deduction in employee salary
hi
basic salary low than 15000 but basic+other wages more then 15000. pls give calculation.
Hi Dharmendra,
You should consider basic salary only.
Hi Sir,
Is there any option to calculate pf on Rs. 15000 i.e. Rs. 1800 Maximum, if basic pay is more than 15000.
Hi Aakash Raj,
Up to 15000 basic salary, it is mandatory to contribute to EPF, if the employer wants to pay PF to the employees whose monthly basic salary is more than 15000 Rs then it is their wish.
The calculation will be:
Employee PF contribution: 12%
Employer pension contribution: 8.33%
Employer PF contribution: Employee PF contribution – Employer Pension Contribution
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
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.
Thank you Sir ????