Provident fund scheme Act 1952 is one of the main savings platforms in India, employees who are working in both private and government sector organisations. Provident fund will be calculated based on employee basic salary and dearness allowance, in case of private organisations there is no dearness allowance.
Every organization with 20 or more employees should register under EPFO.
The provident fund ceiling threshold limit has been increased to Rs.15,000 from Rs.6500. Vide notification dated on 22.08.2014 Ministry of Labour and Employment has been increased.
1. Employee’s PF contribution (Basic + DA) 12%
2. Employer’s PF contribution (Basic + DA) 13%
EPF A/c No.1 = 3.67%
PF Admin charges A/c No.2 = 0.5%
EPS Contribution A/c No.10 = 8.33%
EDLI Contribution A/c No.21 = 0.5%
Salaries account A/c Dr
To PF employee’s contribution A/c
To ESI employee’s contribution A/c
To Professional Tax A/c
To TDS A/c
To Salaries Payable A/c
PF employee’s contribution A/c (12%) Dr
PF Employer’s contribution A/c (13%) Dr
To Bank A/c
House rent allowance
Other special allowance
Employer PF contribution
Employer ESI contribution
Basics of Employees State Insurance
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