Pension fund contribution and FPF Bais amount...

[Former Member]

Hi Team,

I have a issue with PF at my client place.

As you know Pension contribution conditon is that employee whose basic is less then 6500 then the pension contribution ( /3F4) will be 8.33% of actual basic and if the basic salary of employee is >= 6500 then the Pension contribution (/3F4) should be 8.33% of 6500.

Here at my client place it is calculating in a different way .For employee whose basic salary >=6500 pension fund conribution is calculating on the actual amounts only.

Eg: Emplyees basic salary is 15000 and when i run payroll for this employee the results are like this:

/3F4= 1250

/3FC=15000

Kindly let me know what is the problem and what is the solution.

In IT0587 i am maintinaing only PF Trust id not Pension Trust id.Is this the problem?

Regards,

Vimal

[Former Member · Accepted solution]

Hi Team,

Any solution for my query ........please update....

Regards,

Vimal

[Former Member · Accepted solution]

Hi

Try this out

IT 0587, Make the correction as below

Employers details

Basis for contribution :Radio button Select PF Basis

Pension Tick the Contribution towards Pension scheme

Basis for contribution:select the radio button Eligible pay or PF Basis whichever is less

then run the payroll

with regards

partha