PF Deduction

[Guest]

Whether employer and employee contribution of PF should be a fixed amount for every month (or) should be calculated based on the actual pay considering the loss of pay on account of leave.

[CA Rachit Agarwal]

PF amount not fixed, it is the actual payments made. PF is levied on the Basic Amount of salary paid.

AI Summary

Provident Fund Contributions Based on Actual Pay, Not Fixed Amounts; Levied on Basic Salary Amid Leave Pay Loss. A query was raised regarding whether the Provident Fund (PF) contributions by both employer and employee should be a fixed amount monthly or calculated based on actual pay, considering any loss of pay due to leave. The response clarified that PF contributions are not fixed amounts but are based on actual payments made, specifically levied on the basic salary amount.