What is payroll and provident fund and how to calculate them?

Answer 1

It depends on where you're from and you have to follow your country's legislation. A provident fund is usually operated by a govt. which can decree that an employer must deduct a certain percentage of the employee's salary and pay that over to the govt. sometimes together with another portion which shd come from the employer. Let's assume that the deduction rate from the employee is 20% and the contribution rate by the employer is 10% and that the employee earns a salary of $2,000 per month. His take-home pay will be $1,600 ($2,000 less 20%) and the employer has to contribute $200 (10% of $2,000). The total amt for the provident fund the employer must pay to the govt each month for this employee would be $600 (the $400 deducted from the employee plus the employer's contribution of $200).