Provident Fund
The person drawing a wage up to $6,500 per month is eligible for PF. The PF is calculated based on basic + D.A (dearness allowance). Here you have to note one thing: $6,500 is eligible only for normal people, up to $25,000 for physically challenged individuals.
- Employees' contribution: 12%
- Employer's contribution: 13.61%
Three accounts are involved in the calculation of PF:
1. EPF - The Employees' Provident Fund Scheme
2. EPS - The Employees' Pension Scheme
3. EDLI - Employees' Deposit Linked Insurance Scheme
For the calculation of EPF, 12% of the employee's contribution is added, and 3.67% is added from the employer's contribution.
For the calculation of EPS, 8.33% will go towards the pension from the employer's contribution.
For EDLI, 1.61% from the employer's contribution, 1.1% admin charges for EPS and EPF, 0.5% EDLI premium, and 0.01% admin charges for EDLI.
ESI: Employee State Insurance
- Employer contribution: 4.75%
- Employee contribution: 1.75%
For more details, visit the website:
http://www.epfindia.com
ESIC Home Page:
http://esic.nic.in