How to Calculate Pf
- 1). Figure the employee's contribution to Pf by looking first at the employee's basic salary. Take 12 percent of that basic salary, by multiplying the total salary by .12. This is subject to a maximum of Rs.780 per month. The 12 percent is segregated into two parts, 8.33 percent for pension and 3.67 percent for Pf.
- 2). Figure the employer's contribution to Pf, again looking at the employee's basic salary. This will also be 12 percent of the basic salary, subject to a maximum of Rs.780 per month. If the employee joins the employer with a basic salary of more than 6500 and the employee was a member of EPF with a previous employer, the current company must support and continue with the previous EPF. Use form 11 under EPF.
- 3). Fill out form 5 for new arrivals to the company. Form 10 should be used for the leftover of the company. Form 12 should be submitted monthly regarding the total contribution of the employer and employee. Temporary staff should also be mentioned in form 12. If an employee resigns, the employee may have access to the money after three months. The same forms should be used for the first two months after the employee has resigned. The employee's Pf account may be transferred to the next employer using form 13. A Pf return must be filled out every six months to show which contributions have been made by both employee and employer.