Are Employees Now Responsible for the Full 25.61% Contribution? Seeking Clarity!

Hi All,

I have heard from an HR manager that now employees have to contribute all 25.61% from their salary. Is that so? Please update me if anybody has more information.

Sanjeev

Are you talking about PF? Only 12% is contributed by the employee, and the rest is contributed by the employer. Some organizations are including the entire 24% in their CTC.

Only 12% of the PF contribution comes from the employee, with the rest being provided by the employer. However, in many companies, the total contribution is considered a part of the employee's CTC structure.

Regards,
Neha

Hi,

Provident Fund
Percentages are calculated on (Basic Salary + DA).
Employee contribution: (12%)
Employer Contribution (12% + 1.61%)
A]
12% Bifurcation
- 8.33% pension fund
- 3.67% Provident fund
Total 12%
B]
1.61% Bifurcation
- Employees Deposit linked insurance: 0.5%
- EPF Administrative charges: 1.1%
- EDLIS Administrative charges: 0.01%

Only 12% PF contribution is made by the employee, with the rest covered by the employer. However, in many companies, the total contribution is considered as a part of the employee's CTC structure.

Thanks & Regards,

Sandeep Kumar Dwivedi