PF Proration

[Former Member]

HI all,

The basic of the employee is Rs 30000, and he is opting for PF.

Rs 780 will be deducted from his salary against PF (6500*12%, as basic is more than Rs 6500.)

now employee is absent for 10 days , his basic will become Rs 20000.

System is still showing PF as Rs 780 and is not prorating based on his absent days.

So now issue is will PF also be prorated as basic has reduced to:

30----

---

780

20----

---

780*20/30 = 520

or it will; reamin Rs 780, based on the logic that if basic is > Rs 6500, Pf will be Rs 780.

reagards

Mandeep

[Former Member]

Hi Aman,

As per clients requirements they pro rate in their legacy system.

Is Deduction of Rs 780 even in case of his absence a standard process?

[Former Member]

Hi Mandeep,

Till the time his Basic salary is more than 6500, the PF deduction should be 780.

Regards,

Aman

[Former Member]

Hi Mandeep,

I think it will remain 780 as the basic is still above the max. threshold of 6500.

Regards,

Aman