PF percentage is the rate at which employee and employer contribution towards the PF scheme. Monthly PF percentage of an employee is the 12% of his/her wage whereas the employer should pay additional charges of 1.16% along with 12% so that the employer PF percentage is marked at 13.16% of basic with effect from 1st April 2017.
EPF contribution is the amount deposited by employee and employer towards PF to secure the course of an employee after retirement. The employee has to pay 12 percent of his monthly wage to EPF and this amount directly goes under the EPF scheme. By depending upon employees convenience, he/she can contribute more than 12% of their basic pay. Having an EPF account ensures security and other bonus such as added interest on the accumulated PF amount annually.
An employer contribution to PF is noted at 13.16% of basic employee pay but this total is not deposited directly in PF but is divided into many. The employer contribution break-up towards EPF is 3.67% goes to EPF ( Employee provident fund), 8.33% is contributed to EPS ( Employee pension scheme), 0.5% to EDLI ( Employees deposit linked Insurance) scheme, 0.65% to EPF administrative charges and 0.01% towards administrative charges of EDLI which sums a total of 13.16% contribution.
The EPF contribution rate 2017-18 is revised on the circular dated 1st April 2017 with a reduction of EPF admin charges from 0.85% to 0.65% is marked at 12% for employee and 13.16% for employer. Recently it is notified that the EPF admin charges are reduced to 0.50% w.e.f, 1st June 2018. A basic of 10 % PF contribution by an employee can be applied to the companies with a smaller number of employees (ie., <20 employees). After the deduction of EPF admin charges in June 2018, the employer's contribution to PF is marked at 13.01%.
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