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What is ee amount in pf?
ER Stands for the Employer Contribution in your PF Amount.
Who is responsible for PF?
An employee whose drawing wage or basic salary has upto rs 6500/- responsible to pay pf contribution 12 % from employer & employee respectively.
Does gross salary include employer's contribution to the PF of the employee in India?
In India, gross salary typically refers to the total earnings of an employee before any deductions, including basic salary, allowances, bonuses, and other benefits. The employer's contribution to the Provident Fund (PF) is not included in the gross salary; it is considered a separate benefit. Consequently, while the employee's own PF contribution is deducted from their gross salary, the employer's contribution is an additional amount provided by the employer.
Is PF to be paid by the company into the employees account is deducted from employees salary?
No, the Provident Fund (PF) contribution is not directly deducted from the employee's salary. Instead, it is a statutory benefit where both the employer and employee contribute a percentage of the employee's basic salary to the Provident Fund account. The employer's contribution is a separate contribution made by the company, while the employee's portion is typically deducted from their salary before it is disbursed.
Whether ctc included employee pf and employer pf?
Yes. CTC includes both Employee and Employer PF contributions
If employee contribution for PF is 780 and Company is also 780 then how much benefit to an employee?
The benefit is the fact that Rs. 1560/- is added to your PF account that will earn an interest of 8.5% every year. This would add up to a handsome amount at the end of say 5 or 10 years of service.
What basis can an employer deduct his share of pf contribution from employees salary?
On the basis of the Basic Salary component that is part of the salary. The amount contributed is 12% of the basic salary from employee as well as an equal contribution by the employer
What journal entry for provident fund?
To record employee contributions to the provident fund: Debit Provident Fund Expense and Credit Employee Contribution Payable. To record employer contributions: Debit Provident Fund Expense and Credit Employer Contribution Payable.
How do you deduct PF contribution for piece rate employee?
You need to fix a certain amount as basic salary if you want to deduct PF. set a minimum number as basic salary and calculate PF on it. The remaining amount based on piece rate can be added a different component in the persons salary
Is an employer's contribution for the PF Fund considered part of Cost-to-Company in India?
Yes it is considered as cost to company, since the benefit would be enjoyed by the employee at a later stage or when he resigns from the company he can transfer or with draw the complete PF money..
How much your new employer can deduct for employee provident fund for partial month working?
PF contributions depends on you basic salary. Eg. if you have worked for 15 days , then on 15 days basic, your pf contribution will be calculated i.e 13.61%of basic .
What is PF?
A social security system known as Provident Fund was established in order to encourage employees to save and to benefit them in retirement. Each month, the employee and the employer contribute to the Provident Fund (PF). With a few notable exceptions, an employee’s contribution to the PF may only be withdrawn during the duration of their job. Employers registering with PF are required to submit their PF returns on a monthly basis. Each month’s 25th is the deadline for completing the PF return files. We shall go into great detail regarding the several forms that are used to file PF returns here. Employers can utilize the Unified site to conveniently file their PF returns.
