Understanding PF and ESI Contributions: Can Someone Explain How They Work for Employees and Employers?

I need to learn about the PF and ESI contributions for both employees and employers. Kindly explain to me.

Thanks.
Regards

Dear Aiswarya,

Regarding EPF:

1. Employee contribution: 12%
2. Employer contribution: total - 12%; 8.33% subject to a ceiling of 541 p.m will go to EPS. The rest of the amount will remain with EPF.
3. EDLI (also part of EPF): 0.5% from the employer will go to EDLI.
4. Besides the above, the administration charges of 1.1% for EPF and 0.1% for EDLI have to be remitted by the employer. For exempted Trust and in lieu of EDLI, instead of the administration charges, inspection charges of 0.18% and 0.005% will be incurred, respectively, by the employer.

Regarding ESI:
- Employee contribution: 1.75%
- Employer contribution: 4.75%

Abbas.P.S

PF Wages and Contribution Adjustment

Please inform me about PF wages. If an employee wishes to reduce his PF contribution in writing, stating that his Basic+DA is ₹5000 and gross is ₹9000 per month, and he wants to reduce his Basic+DA to ₹4109 (as per the State Govt. Minimum Wage Act), can the employer change his contribution? If yes, kindly explain the procedure and the relevant clause of the Act.

Thank you.

Regards