Confused About My PF Deductions: Can You Help Me Understand What's Going On?

Hi All,

I used to work in a company located in Bangalore. Even though the company had been running for approximately 8 years, the PF and ESI came into existence only 2 years ago when it became a Pvt Ltd. I worked there until one year after I became eligible for deductions. My PF and ESI amounts were deducted for a period of 12 months before I left the company.

The PF amount of Rs. 780 was successfully deducted from June 2010 to July 2011.

I checked my PF account status online and received a message stating, "EPF balance in A/C No. XXXXX is EE Amt: Rs. 6419, ER Amt: Rs. 1967 as on 09-04-12 (Accounts updated up to 31-03-2011) - EPFO."

Below are my doubts, kindly provide me with clarity as I am new to this:

1) What does EE Amt mean, which is Rs. 6419?

2) What does ER Amt mean, which is Rs. 1967?

3) Some of my salary slips mention "Company Contribution for PF is Rs. 894" (I could not see this Company Contribution column in all my payslips, only in a few months' slips).

4) If they contributed Rs. 894 every month, what should be the PF amount in my account?

5) Will the company contribute simultaneously with our PF deductions?

6) What should be my next steps if the company has not contributed every month as mentioned in point 5?

Awaiting your prompt response at the earliest.

Regards,
AJAY

[Phone Number Removed For Privacy Reasons]

PF Deduction Explanation

PF deduction of Rs. 780.00 means your basic + DA is Rs. 6500.00. PF deduction (employee share "EE") is 12% on basic + DA, i.e., Rs. 6500 x 12% = Rs. 780.00, which will be credited to the Provident Fund A/c.

The employer will also contribute at 12% on basic + DA, of which 8.33% will be credited to the Pension Fund A/c and the balance 3.67% to the Provident Fund A/c. This 3.67% is mentioned as the ER share. Rs. 894.00 is inclusive of the employer's contribution at 12% on basic + DA (the contribution will be a maximum of Rs. 780.00) and EDLI & other administrative charges that should be paid by the employer.

Your account balance mentioned is inclusive of interest paid by EPFO.

Regards,
Mohan.

Dear Mr. Ajay, As you mentioned, your deduction started in June 2010. The amount shown on the PF Slip is from June 2010 to February 2011, covering a period of 7 months.

The return for the period of March 2011 to February 2012 is yet to be submitted by your company.

Understanding PF Contributions

EE represents the employee's PF share of 12%, while ER stands for the employer's PF share of 3.67%. Both are reflected on the PF Slip. The pension share is 8.33%, which is not included in the PF Slip.

The total amount submitted by the company is 13.61%, comprising 12% under PF & Pension, and an additional 1.61% for administrative expenses (1.1%), EDLI (0.5%), and expenses on EDLI (0.001%).

Employees receive 12% + 12% (3.67% + 8.33%) + interest provided by EPFO. Therefore, your EE share of 6419/- represents your 12% for 7 months, along with interest, while the amount of 1967/- is the 3.67% for seven months. The 8.33% share is not included in your PF slip.

Regards, Madan Gopal Sharma

Dear Mr. Ajay,

As you mentioned, your deduction started in June 2010. The amount shown on the PF Slip is for the period from June 2010 to February 2011, covering 7 months. The return for the period March 2011 to February 2012 is yet to be submitted by your company.

Understanding PF Contributions

EE stands for employees' PF share at 12%, and ER is the employer's PF share at 3.67%. Both are reflected in the PF Slip. The pension share is at 8.33%, but this does not appear on the PF Slip.

The total amount submitted by the company is 13.61%, comprising 12% for PF & Pension and an additional 1.61% for administrative expenses (1.1%), EDLI (0.5%), and Expenses on EDLI (0.001%).

Employees receive 12% + 12% (3.67% + 8.33%) + interest from EPFO. Your EE share of 6419/- represents your 12% contribution for 7 months plus interest, and the amount of 1967/- is the 3.67% contribution for seven months. The 8.33% share is not included in your PF slip.

Regards,
Madan Gopal Sharma

Greetings for the day!!! Thank you for the information, Sir, but I am unclear about the Pension part.

If contributions were made for 12 months along with my deductions of 780/- per month, and factoring in the approximate interest from EPFO, what should be the amount available in my PF account?

Please inform me of the estimated amount available in my PF account after 12 months of successful deductions and contributions.

Deduction Period: Jul 2010 to Jul 2011

Regards,
AJAY

Suppose your basic is ₹6500, then your share will be 6500 * 12% = ₹780 per month. The employer's share for PF will be 6500 * 3.67% = ₹239 per month, and the pension share will be 8.33% = ₹541 per month.

Therefore, your monthly total amount in PF and under the Pension scheme will be ₹780 + ₹239 + ₹541 = ₹1560, and annually it will amount to ₹18720, plus the interest paid by EPFO.

However, on your PF slip, the 8.33% part will not be reflected. It will only show your 12% and 3.67%.

When you withdraw your PF, you can withdraw both shares with the help of Form No. 19 for PF share (12% + 3.67%) and Form No. 10C for the Pension share (8.33%).

The period of PF return is from March to February of every year.

Feel free to ask for any other clarification.

Regards,
Madan Gopal Sharma

Greetings from AJAY!

I used to work in a company located in Bangalore. Even though the company had been running for approximately 8 years, the PF and ESI came into existence only 2 years ago when it became a Pvt Ltd. I worked there until one year after I became eligible for deductions. My PF and ESI amounts were deducted for a period of 12 months before I left the company.

The PF amount of Rs. 780 was successfully deducted from June 2010 to July 2011. I checked my PF account status online and received a message stating, "EPF balance in A/C No. XXXXX is EE Amt: Rs. 6419, ER Amt: Rs. 1967 as of 09-04-12 (Accounts updated up to 31-03-2011) - EPFO."

Below are my doubts, kindly provide more clarity as I am new to this:

1. What does EE Amt mean, which is Rs. 6419?
2. What does ER Amt mean, which is Rs. 1967?
3. Some of my salary slips mention "Company Contribution for PF is Rs. 894" (I could not see this Company Contribution column in all my payslips, only in a few months' slips).
4. If they contributed Rs. 894 every month, what should be the PF amount in my account?
5. Will the company contribute simultaneously with our PF deductions?
6. What should be my next steps if the company did not contribute every month as mentioned in point 5?

Awaiting your speedy response at the earliest.

Regards,
AJAY

Really sad for no comments... Awaiting for the same at the earliest!!

Regards,
AJAY

Why PF amount deducted in the slip is not matching with EE share in PF passbook (online PF). Please advise.