Confused About EPF Challan Calculations? Let's Clarify Employer and Admin Charges

Hi, In the EPF challan, it shows row-wise:
1. Employer's share of contribution
2. Employee's share of contribution
3. Administration charges
etc.

The total for the employer's share shows 3.67% + 8.33% + 0.5%, which means the employer's contribution also includes 0.5%. The administration charges are only 1.1% + 0.01%.

Is this correct? Please guide me if my statement is wrong.

Regards,
Usha

According to the EPF Act, the employee contribution is 12%. The employer contributions are as follows:

- EPF: 3.67%
- FPF: 8.33%

In addition to the above, the company has to pay administrative charges along with its contribution, totaling around 1.61%. This includes:

- 1.10% as administrative charge
- 0.50% as EDLi charge
- 0.001% as administrative charge on EDLi.

I hope this information is helpful to you.

Thank you,

Hari

You are right, the calculations and percentages you provided in the thread are absolutely okay.

Employee Share: 12%

Employer Share: 13.61% (3.67% + 8.33% + 0.5% + 1.1% + 0.01%)

Regards,
Ritu

You are right, the calculations and percentages you provided in the thread are absolutely correct:
- Employee Share: 12%
- Employer Share: 13.61% (3.67% + 8.33% + 0.5% + 1.1% + 0.01%)

Regards,
Ritu

Dear all, my understanding of the salary component in HR is limited as I primarily focus on employee engagement. However, I am eager to learn about salary breakdowns, HR practices, and benefits such as conveyance, PF, and ESI. I would like to know who is eligible for these benefits, who is not, and the reasons behind companies deducting both employee and employer contributions for PF and ESI from the employee's salary.

I would appreciate your guidance in helping me comprehend these aspects better so that I can tackle new challenges effectively.

Regards, Soma

Understanding EPF, FPF, and EPS

Before 16/11/1995, there were two terms: EPF and FPF. After that, FPF changed into EPS.

EPF stands for Employees Provident Fund (PF). There is no difference in these two terms.

FPF stands for Family Pension Fund. In this scheme, a pension is only allowed when an employee dies in service. Otherwise, they receive a lump sum amount after retiring.

EPS refers to the Employee Pension Scheme. In this scheme, an employee receives a lump sum amount if their service is less than 10 years. If the service period is more than 10 years, then the employee will start receiving a pension after attaining the age of 58. However, they can choose to start receiving the pension at 50 as well.

Source(s): EDLI stands for Employees Deposit Linked Insurance.