How do we calculate PF contribution and COLA

[MuddassirACCA]

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

[Aqeel Ahmed]

Dear Muddassir,

PF is calculated on basic, which we divide into 12 months and deduct from employee salary, same amount is contributed by Company, As far as COLA is concerned, for that i think every company has different procedures, as our company calculates 5% on Gross Salary, so this may vary company to company. If there is any standard, plz let me know