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PF Calculation

Understanding Provident Fund calculations

Provident Fund

PF Basics

  • Employee contribution: 12% of Basic + DA
  • Employer contribution: 12% (split into PF + EPS)
  • Wage ceiling: Rs. 15,000 (optional for higher salaries)

Calculation Example

For Basic of Rs. 20,000:

  • Employee PF: Rs. 2,400
  • Employer PF: Rs. 1,200 (to EPF)
  • Employer EPS: Rs. 1,200 (to pension)

PF Settings

Configure per employee:

  • PF applicable or not
  • Include other allowances
  • Restricted to ceiling
  • VPF (voluntary contribution)

Compliance

System generates:

  • Monthly PF challan
  • ECR file for portal upload
  • PF register

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