How do we calculate PF contribution and COLA

[MuddassirACCA]

What is the formula for calculation of Provident Fund Contribution and what is its rate in Pakistan?
Also how do we calculate COLA Allowance in Pakistan?
Plz give reference of relevent section / rule as well.

[ali4u3]

PF contribution = Basic Salary / 12 = PF per month contribution by the employee.

OR 8.33% of Basic Salary per month.


Regards


Ali

[Sitara]

Asalam Alaikum,

Welcome back ali4u3. What is the uptade of your studies now. Can you tell me from where you studied PIPFA?. And as I remember you posted somewhere that you are in module C.

[MuddassirACCA]

Mr. Ali thanks for ur answer. Are u sure that PF is 8.33% of basic salary. If so can give any reference becasue i have heard that it is 7% of basic + COLA.
Also can u tell me how is COLA calculated in Pakistan and what is its amount?

[ali4u3]

Yes...i m damm sure..PF is 8.33% of Basic salary p as meri salary say bhi aitna hi deduct hota hai p

@ Anam ...kindly check yr email..p

[noman]

I think 8.33% is one that is very common. however, tax authorities allow upto 10% for exemption..and therefore it could be higher than 8.33%..u have to see the terms & conditions to verify..