PF Wage: PF Wage is also known as Basic Wage. Basic Wage is the amount on which PF is calculated. EPF (Employer Provident Fund) contribution is transferred to Account 1. Basic Wage may or may not be limited to 6500.
Pension Wage: Pension Wage is the wage on which Pension Amount is calculated. EPS (Employer Pension Scheme) contribution is transferred to Account 10. Pension Wage is limited to 6500. This means that under no circumstance the contribution in Account 10 can be greater than 541 for one month.
Eg. An employee gets 10000 per month as Basic. His PF is calculated on the full amount of 10000 i.e. the Basic Wage is 10000.
Employees Contribution
12% of 10000 = 1200 (Goes to Account 1)
Employers Contribution
Pension Wage (8.33% of 6500) = 541 goes to Account 10
3.67% of Basic Wage + Left Over goes to Account 1 = 440 + 219 = 659
In the above example 10000 is the Basic Wage (PF Wage) and 6500 is the Pension Wage.
Webpay Payroll Software by BBSPL
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