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epf calculation salary

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Due to change in Calculation of EPF (Employee Provident Fund) Contribution: if the salary structure is BASE(6000)+Kitty Allowance(3000)+ Conveyance(800) + HRA(2500) + Sundry Medical(1250) + LTA(3000) + Personal Allowance(30000) + Variable allowance(8000) what would be calculation of PF/EFP ? Also, from where we can get this validated if organisation is paying PF only on base(6000)??


Previously, the term ‘salary’ for computing EPF contribution included basic + DA (dearness allowance). As per the new rules, ‘salary’ will include basic + DA + allowances that are ordinarily, necessarily and uniformly paid to employees.

Example: Suppose your monthly salary particulars are as follows: Basic: INR 30,000 p.m. Conveyance allowance: INR 5,000 p.m. Medical allowance: INR 5,000 p.m. As per previous EPF rules, an amount of 12% on Basic (Rs.30,000), i.e. INR 3,600 was the employee’s contribution. As per the new rules, an amount of 12% on Basic + Allowances (Rs.40,000), i.e. INR 4,800 would form the employee’s contribution.

Please enquire with your HR if kitty allowance is part of salary for computation of EPF contribution

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