How To Calculate PF Of Basic Salary More Than 15000

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 on 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 + DAEmployee & employer
contribution on : 15000 Rs
Employee PF Contribution12% 1800 Rs
Employer PF contribution3.67%550
Employer Pension contribution8.33%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 + DAEmployee Contribution on : 18000 Rs
Employer contribution on : 15000 Rs
Employee PF Contribution12% 2160 Rs
Employer PF contribution3.67%550
Employer Pension contribution8.33%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 + DAEmployee contribution on : 18000 Rs
Employer pension contribution on : 15000 Rs
Employee PF Contribution12% 2160 Rs
Employer Pension contribution8.33% on 15000 /-1250
Employer PF contribution2160-1250910

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

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

  1. 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

    Reply
    • 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.

      Reply
      • 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.

        Reply
        • 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.

          Reply
    • 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

      Reply
  2. 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

    Reply
    • 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.

      Reply

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