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Former Member

PF Calcution

Hi Friends,

For few employees PF should be calculated on 40 % of Basic pay.

Example : Basic Pay = 10,000/-

PF = 12 % of 4,000 (40% of 10,000)

= 480/-

Can any one give solution for this.

Thanks in advance

Regards

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2 Answers

  • Best Answer
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    Former Member
    Sep 11, 2008 at 10:07 AM

    hi

    i think in ur case it is not PF, VPF (voluntary provident fund)

    VPF deduction is depends on employee.

    on this deduction no employer contribution will be there.

    onely % of interest he will get from the PF trust.

    if the case is like VPF, then go for deduction wage type.

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    • Former Member Former Member

      Hi Saathi,

      Thanks for reply.

      But this leads to more complication. There will be double entry for gross.

      Moreover, I may have to create different wage for basic & should be eliminated from PF calculation.

      Another wage for PF calcualtion & should not be considered for Gross.

      I am trying with User exit Allowence grouping.

      Any way, I let you know once I find feasible solution for this issue.

      Regards

  • Sep 10, 2008 at 11:57 AM

    PF is standard one 12 % on Basic or 6500 which ever is less

    can u tell ur Business requirement

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    • Former Member Former Member

      Hi Anu,

      Thanks for your reply. But this calculation is for only few employess. I cannot change entire process. PF is as per stautory requirement. I am trying to make use of Allowence grouping. If it works, I'll post the solution.

      Regards