How to calculate employees provident fund (epf)?

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Updated: Wednesday, May 29, 2013, 12:20 [IST]
 
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How to calculate employees provident fund (epf)?

Many of us willingly or unwillingly contribute a certain amount towards employees provident fund (EPF) every month. This is called employee contribution, while an amount will be contributed by your employer, which is referred to as Employer contribution.

EPF= Employee (12% of salary + DA) + Employer (12% + DA)

Earlier, Salary included basic + DA (dearness allowance). As per the new rules, ‘salary' will include basic + DA + allowances that are uniformly paid to employees.

Let us site an example: If Sameer's basic salary is Rs 30,000 and conveyance allowance is Rs 5,000 p.m and medical allowance is Rs 5,000 p.m, as per old rules it was calculated only on basic salary, which would be only Rs 30,000 in the above illustration.

Rs 30,000*12/100= Rs 3,600

As per new rules, it is calculated along with other allowance like conveyance and medical which are common to all the employees. 

Rs 40,000*12/100= Rs 4,800

GoodReturns.in

Topics: epf, pf
Story first published:  Monday, May 13, 2013, 10:08 [IST]
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