Kindly look into this below issue.
As per PF Act, 1952 if the basic salary of an employee is more than 6,500/- PF basis shall be either 6,500/- or same as basic salary. But pension basis shall not be more than 6,500/-.
Ex: Basic salary of an associate is 10,000/-
Due to 15 days absent, his basic salary is 5,000/-
In this case PF basis and pension basis shall be Rs. 5000/-.
But the Pension is not calculated correctly.
From the below calculation, if the basic salary is less than 6,500/- then PF basis and pension basis both should be the same.But different amount is claculated for pension.
WT WT Text SAP calculated amt. correct amt.
/3FA PF basis for Ee contr. 9910 9910
/3FB PF basis for Er contr. 9910 9910
/3FC Pension basis for Er contr. 5452 6500
/3F1 Ee PF contri. 1189 1189
/3F3 Er PF contri. 735 648
/3F4 Er pension contri. 454 541
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