What is the EPF contribution rate table?

Posted on 28th Aug 2018 | 3436 views

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EPF contribution is the abbreviated form for employee provident fund contribution. EPF contribution is an amount contributed towards the EPF scheme for the post-retirement benefits of the employee.

EPF contribution

EPF is administered by the EPFO (employee provident fund organization) established by the government of India and employee and employer has to contribute a certain amount specified under EPF act 1952.

The employee has to contribute 12 percent towards provident fund 1952and the employer has to match the employees according to the provident fund rules stipulated under EPF Act. Therefore, Employer contribution to PF is 12 percent however being a part of EPF scheme employer contribution is shared among the EPF, EPS, and EDLI. The EPF and EPS are part of employees provident fund scheme. So from 12% contributed towards PF and only 3.67% is allocated towards the PF account and rest 8.33% goes to the Employee pension scheme.

Employer contribution to PF

Contribution towards Employee provident fund is 3.67%

Contribution towards Employee pension scheme is 8.33%

Contribution towards Employees Deposit Linked Insurance Scheme (EDLIS) 0.5%

Contribution towards EPF administration charges is 1.1%

Contribution towards EDLI administration charges 0.01%

Employee and employer contributions

EE Amount is the PF contribution of an employee to the EPF account. The total of PF amount contributed towards PF monthly from employee salary.

ER Amount is the employer PF contribution to PF i.e. establishment contributions which the employee is employed.

Eligibility criteria

Establishment employing 20 or more employees with the maximum wage of 15,000 are eligible for EPF. The employee has to pay 12% form the salary and employer must contribute according to the salary paid to the employee. An employee can choose to pay a higher rate if the employer is not under any objection to pay higher rates. PF contribution rate is the significant contribution from employee income.

The present EPF interest rate is 8.65% and calculation of interest relies on the salary of the employee and on the share of employer contribution to PF.

PF calculation 2017

EE amount (employee contribution) = 12% basic pay + DA

ER amount (employer contribution) = 3.67% of salary paid to the employee

PF deduction = Adding EE amount + ER amount

EPF contribution

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