Understanding EPF Contributions: Can Employers Contribute More Than 12%?

Dear All,

What is the maximum employer share in PF? Can it exceed 12% or not?

Please reply as soon as possible.

Thanks & regards,
Raj

Hi Raj,

According to me, it can't be more than 12%. The employer's share of PF will be considered as 3.67%, and the remaining 8.33% will go to the Pension fund.

For more details, visit the website www.epfindia.com.

Hope it's clear for you. Other members, please correct me if I am wrong.

Regards,
Amith R.

Hi,
The employer share need not exceed the standard contribution – 12% or 10% as the case may be. However the employees can opt to contribute more upto 60% of their basic pay, as voluntary contribution. This would result in some amount of administrative overhead or the employer. Even if the employee opts for voluntary contribution at a higher leverl, the employer contribution need not increase.
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sree

Employers can also contribute over and above 12%, subject to prior permission from RPFC. It may be noted that excess contributions by the employer will be taxable under the IT Act, 1961.

Regards,
Paresh Pathak

Hi Raj,

The maximum contribution from the employer for PF is 12% only. In this, the employer's share of PF will be considered as 3.67%, and the remaining 8.33% will go towards the Pension fund. I hope this clarifies it for you.

Enjoy! :D

Anita

Hi all,

In fact, the employer contributes 13.61%, and the employee contributes 12%. Please correct me if I am wrong.

Regards,
Pushpa

Dear Pushpa,

The additional 1.61% of employer contribution is the sum total of admin charges and EDLI funds and has no connection with the accumulations of employees' PF account.

One clarification to my earlier comment: employer and employee contributions should match in cases where the employer contribution is also enhanced to more than 12%. However, when an employee contributes at voluntary higher rates, the employer can restrict its contributions to 12% only.

Paresh Pathak