The document explains how to calculate Provident Fund contributions in India. It is divided into employee and employer contributions to different accounts. The employee contributes 12% of basic salary and dearness allowance to Account 1. The employer contributes 3.67% to Account 1 and amounts ranging from 0.5-8.33% to Accounts 2, 10, 21, and 22 for administrative charges and pension and insurance schemes. Provident Fund account settlements now typically occur within 20-45 days if the proper documents are submitted.
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How to calculate provident fund
1. Let me explain you how to calculate Provident Fund:
It is divided into two parts:
A)Employee:-> 12% on Basic & D.A. in Account no. 1
B)Employer:-> 3.67% on Basic & D.A. in account no. 1
1.10% Admin Charges for epf in account no. 2
8.33% on Basic & D.A. in account no. 10
0.5% on Basic & D.A. in account no. 21
0.01% on Basic& D.A. in account no. 22
Account no.s Details:
1) Account No. 1:-> For EMPLOYEE PROVIDENT FUND.
2) Account No. 2:-> Admin Charges for E.P.F.
3) Account No. 10:-> For Employee Pension Scheme.
4) Account No. 21:-> For Employee Deposit-Linked Insurance Sceme.
5) Account No. 22:-> Admin Charges for E.D.L.I.
Now a days PF account settlement is very fast process. Mostly PF Account will settle in 20 days
- 45 days. You can check with PF Office and submit RE-AUTHORIZATION letter with your
bank account proof. Then your account will be settled in 20 days.
