Understanding PF Contributions: How Are Employer Shares Split Between EPF and Pension?

Dear seniors,

Please educate me on the area of PF contribution amount distribution between EPF and the pension scheme.

Member 1: Contribution is 1500/-
Member 2: Contribution is 900/-

In the employer share, what part goes to EPF, and what part goes to the pension fund scheme.

Thank you,
Aakhya

Entire contribution of the employee should be paid into the Provident Fund, but it is only the employer's share that is to be divided into two and contributed separately into the Provident Fund and Pension Fund.

Assuming a PF qualifying salary of Rs. 12,500 and the company does not restrict contributions to Rs. 6,500, with the employee's share of contribution being Rs. 1,500, and the employer willing to contribute 12% on Rs. 12,500 (i.e., Rs. 1,500), then the payment will be made as follows:

To Pension Fund: Rs. 541 (i.e., 8.33% of Rs. 6,500 only)
To Provident Fund: Rs. 959 (Rs. 1,500 minus Rs. 541)

If the employer's contribution is limited to the mandatory contribution of 12% on Rs. 6,500 only, then their contribution to the Provident Fund will be Rs. 239 instead of Rs. 959.

Regards,
Madhu.T.K