PF Contribution

[Former Member]

Ther is a scenario where PF contribution is calculated Eligible pay or PF basis which ever is less and employee basic salary is 20,000 that means he is eligible for PF and his contribution will be calulated on Rs. 6500/- Now please find the detail scenario.

Employee joined : 15 of the month, that means he worked 15 of particular month and his PF contribution is calculated like this.

EE Cont. : Rs. 390 even though his basic salary was processed Rs. 10,000/-

the wage tpes are generated like this:

/3FA : 3250.

/3F1 : 390 INSTEAD OF 780/-

Please suggest whether the system is generating correct amount or it should generate Rs. 780/- (6500 * 12%)

Regards,

Ranjan

[sikindar_a · Accepted solution]

if you have opted for PF as Basic Salary or which ever is less than the caluculation for PF is Correct the amount 780 should get prorate when employee joins or resigns in mid moth

[Former Member]

Hi,

This is standard behaviour, based on start & end date of the PF infotype, it will prorate the amount accordingly for PF basis.

Good Luck.

Om.