Problem in EPF calculation.

[Former Member]

Dear All,

I have separated the following employees as per dates and other details mentioned in the below table.

As per our company's rules, we have ceiling basic of EPF i.e. Rs. 6500/-.  Hence if the earned basic exceeds the ceiling amount, the calculation should be made on 6500/- @12% i.e. Rs. 780/-.  If the same is below the ceiling amount, actual earned basic will be counted for calculation. 

I have run PA40 - Separation action for the following employees. 

Emp No.	Emp Name	Separation DT.	Actual Basic	Earned Basic in June-2013	12% of Earned Basic	Actual Deducted	Paid Days in the month of June 2013	Remark
1	Anil	18.06.2013	10120	5734.67	688	468	17.00
2	Janardhan	15.06.2013	21510	3943.5	473	390	5.50
3	Gautam	28.06.2013	8910	7722	927	728	26.00	As 12% of Earned Basic is >780, It should deduct 780 only.  But it has deducted 728.
4	Dubey	24.06.2013	9030	7224	867	780	24.00	As 12% of Earned Basic is >780, It has deducted 780.  This case seems to be OK.
5	Shahbaz	15.06.2013	8860	4134.67	496	496	14.00	Case is OK.

In case of Sl. No. 4&5 the calculation is OK.  But in case of 1,2 and 3 I hope, the system is calculating wrong.  Please suggest if the system is calculating wrong for the employees SL no. 1 to 3, then how to correct the same. 

Thanks..

Sastri

[Former Member]

Hi Srinibas,

As you said your basic is capped for 6500/- for EPF calculation.

Then find the following calculation for the same.

June 30(if full present)  = (6500/30)*30*12% =  780/-

if           29 days present = (6500/30) * No of days present (29)*12% = 754/-

That is standard calculation of PF so, your system is working properly, I hope.

thank you,

Srinivas.

[Former Member]

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