First salary slip.
He thought 12 percent of the whole CTC was leaving.
I said look at basic.
Basic 25,000, how much PF is cut.
Twelve percent of 25,000 is 3,000 from your side.
Employer side is another story.
He had multiplied the wrong number
CTC was 6 something.
12 percent of that is a scary 6,000 plus a month, if you do that crime.
PF is usually on basic plus DA.
Not on HRA.
Not on the full CTC.
His slip said basic 25,000.
I opened PF calculator.
This is an estimate, not an official figure.
The three boxes on this site
Monthly basic + DA.
I put 25000.
Twenty five thousand.
Employee PF.
Default 12.
I leave 12.
Employer PF.
Default 12.
I leave 12.
Calculate.
Employee PF this month, 3,000.00.
Employer PF this month, 3,000.00.
Total PF parked, 6,000.00.
In-hand reduction, 3,000.00.
That last row is the one he feels.
3,000 less in the bank.
The other 3,000 is employer money into the PF account.
It was in CTC talk.
It is not a second cut from his credit.
He had counted 6,000 leaving the salary.
That is the usual first-slip panic.
Why I say usually 12 percent
A lot of private slips I have seen use 12 and 12.
This box lets you type other percents.
VPF, he raises Employee PF if he puts extra.
I dont change Employer PF for VPF.
If his offer says 12 and 12, leave the defaults.
If a contract staff slip shows 1,800, that is often 12 percent of 15,000.
Wage ceiling story.
12 percent of 15,000 is 1,800.
This tool will not invent the ceiling.
If you type basic 25000 and 12 percent, you get 3,000.
If his company caps PF on 15,000, type 15000 in Monthly basic + DA to mimic that, or just accept the slip.
I dont have a fake circular for who must use the ceiling.
I dont write one.
I tell him read the PF line on the slip and the EPFO passbook later.
They should be cousins, not enemies.
Small lag, I ignore.
Big mismatch, he asks HR, not me.
Employer side, the story he skipped
Employer 3,000 on 25,000 basic.
In the real world, a part of employer PF can sit as EPS, pension.
This box keeps employer as one number.
I said that.
If he wants more words on both sides, PF employee and employer both sides is there.
I am not splitting EPS here.
I am showing 3,000 and 3,000.
Total parked 6,000.
His take-home is lighter by 3,000, not 6,000.
If he is doing a 6 lakh CTC dream, the take-home page already mixes PF.
That write-up is CTC 6 lakh, what is take-home.
This page is the clean basic.
25,000 in, percents in, two PF numbers out.
DA, the extra word on the label
Monthly basic + DA.
If DA is 2,000 and basic is 23,000, the sum is still 25,000.
Type 25000.
If he types 23000 and forgets DA, PF will show 2,760 at 12 percent.
Then he will say the tool is short.
The tool is not short.
He left 2,000 out.
Some slips have no DA.
Then basic is basic.
Type what the PF is calculated on.
If he is not sure, he looks at the PF rupee and reverse, PF / 0.12.
3,000 / 0.12 is 25,000.
1,800 / 0.12 is 15,000.
That reverse is how I catch a ceiling.
What I dont do with this box
I dont project 20 years of interest.
This is not an EPFO corpus toy.
This is this month's cut.
I dont put yearly basic.
If he puts 3,00,000, PF looks like a house down payment.
Monthly.
I dont put CTC.
I dont put in-hand.
I dont tick a tax regime.
PF is PF.
Tax is another page.
I dont promise the passbook will show 3,000 on the same calendar day as the salary.
Timing is a payroll thing.
Other basics, same habit
Basic 20,000, 12 percent, employee 2,400.
That is the 40 percent of 6 lakh monthly basic I used on the take-home call.
Basic 40,000, 12 percent, employee 4,800.
Employer 4,800 if the other box is 12.
Basic 10,000, 12 percent, 1,200.
I ran these so he sees it is a straight multiply.
Percent box can be 10, or 12, or 15 if he does VPF.
I tried employee 15, employer 12, basic 25000.
Employee 3,750.
Employer 3,000.
In-hand reduction 3,750.
Total parked 6,750.
That is how extra PF feels.
More parked, less UPI.
I dont tell him to do VPF.
I show the box.
Slip versus tool, the usual 20 rupee fight
Round-off.
Arrears.
One unpaid day.
A hold.
Then PF is not exactly 3,000.
He will ping me.
I will say, is basic exactly 25,000 this month.
If they deducted a day, basic may be 24,038 or some ugly number.
Type that ugly number.
Dont type 25000 and shout.
The numbers on the result is two decimals.
The numbers are two decimals.
I keep mixing is/are.
3,000.00 looks proud.
24,038 * 0.12 is not proud, it is messy.
Messy can still be correct.
A mid-year hike, same 12 percent habit
If basic becomes 28,000 in July, I type 28000 for July onward.
Employee PF becomes 3,360 at 12.
I dont average 25,000 and 28,000 in this box.
This is this month.
Arrears of PF on the hike can show as a fat line once.
That fat line is not the new normal.
He should not type the arrears into Monthly basic + DA.
He types the new basic.
If he wants the arrears rupee, that is a one-time slip line, do it on paper.
I keep the tool boring on purpose.
Boring is how you stop double counting.
Fill this, then look at the slip
Monthly basic + DA, 25000.
Employee PF, 12.
Employer PF, 12.
Calculate.
Employee 3,000 is the cut he should circle on the slip.
Employer 3,000 he should not subtract again from in-hand.
If the slip already subtracted 3,000, good.
If he then subtracts 3,000 again in a notebook, he will think he is poorer than he is.
I watched him do that.
I stopped him.
If basic becomes 28,000 after a hike, I type 28000 next month.
Employee PF becomes 3,360 at 12 percent.
I dont average old and new basic in this box.
Arrears of PF can show as a fat one-time line.
That fat line is not the new normal.
Dont type the arrears into Monthly basic + DA.
Dont take 12 percent of CTC.
Dont forget DA if DA exists.
Dont treat employer PF as cash.
Official EPFO site wins for the balance.
This site wins for a quick 25,000 times 12.
That is all I promised.
He said ok, and asked if 3,000 comes back when he resigns.
That is a withdrawal and timing talk.
Not this calculator.
I hung up before I became his YouTube lawyer.