Every establishment in which 20 or more employees are working ( whether employeed directly or through contractor ) shall comply the Employees Provident Fund (EPF) Scheme under The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.
EPF Contribution on employees salary ( Basic +DA+ Retaining Allowance) drawing upto Rs.15,000:-
- 12% of Basic ( Include DA & retaning earnings if any) by Employee from his salary
- Equal Amount is i.e. 12% of Basic ( Include DA & retaning earnings if any) by Employer's. Out this 12% of employers contribution, 8.33% diverted to Employees Pension Scheme (EPS) and 0.5% towards Employees' Deposit linked Insurance (EDLI) and balacne towards EPF.
- Employer also pays 0.85% as EFP Admin fee and 0.01% as EDLI admin charges
In certain specified cases as applicable to industry EPF contribution rate apply 10% in both Employee and employer case.
AS PROPOSED IN THE BUDGET 2018, Contribution from women employees towards their provident fund shall be 8% instead of 12%, for three years. However, employers’ contribution would still be 12% towards EPF contribution and shall subject to full reimbursement by the Government as proposed.