How is PF calculated in India?
The employee contributes 12 percent of his or her basic salary along with the Dearness Allowance every month to the EPF account. For example: If the basic salary is Rs. 15,000 per month, the employee contribution shall be 12 % of 15000, which comes to Rs 1800/-. This amount is the employee contribution.
How is PF calculated on 15000?
Calculation of EPF Contribution made by the employee equals 12% of his/her Basic Pay plus Dearness Allowance (DA). When the Basic Pay + DA is less than or equal to Rs 15000, the employee contribution is 12% of Basic Pay + DA, whereas the employer contribution is 3.67% of the Basic Pay + DA.
How pf is calculated from employer?
You and your employer need to transfer 10% or 12% of your basic salary to contribute towards EPF. However, if you are a woman, you only need to contribute 8% of your basic salary for the first three years. During this period, your employer’s EPF contribution will remain 12%.
What is new PF rules?
New PF rules Existing PF accounts will be divided into taxable contribution accounts and non-taxable contribution accounts. Non-taxable accounts will also include their closing account, which has a March 31, 2021 expiration date. The new PF rules will be in effect beginning with the next fiscal year, on April 1, 2022.
What is new EPF rules?
Any interest credited to the provident fund account of an employee will be tax-free only for contributions up to 2.5 lakh every year and any interest on an employee’s contribution over 2.5 lakh shall be taxed in the hands of the employee year after year. The new PF rules will mostly impact the high-income earners.
What is PF cut from salary?
Employee contribution to EPF: 12% of salary. Employer contribution to EPF: 3.67% of salary. Employer contribution to EPS: 8.33% of salary subject to a ceiling of Rs. 15,000 salary, i.e. Rs.
How much PF is cut from salary?
What is the current PF rate?
EPF Interest Rate FY 2021-22 The current EPF interest rate for the Financial Year 2021-22 is 8.10%. Moreover, the interest is calculated monthly but transferred to the Employee Provident Fund account only on 31st March of the applicable financial year.