Confused About Employer PF Contribution Rates? Let's Discuss What You Know!

Hi everyone,

I am seeking a job as an HR. In an interview, an interviewer asked me, "What is the employer PF contribution now? Is it 13.36% or something else?"

Dear friends,

Employer contribution is 12% of the employee's salary. This includes an 8.33% contribution to the Pension Scheme. Additionally, the Employer has to pay 0.85% as an administrative charge, 0.5% towards EDLI, and 0.01% as EDLI administrative charges. The total contribution amounts to 13.36%.

Abbas.P.S

Hi Abbas,

PF deduction from me (employee) is 12.36% of the basic salary, and as per my knowledge, the company (employer) will be contributing the same amount towards my PF account. Am I right? Recently, I joined one of the companies where they are deducting both employee and employer contributions from my salary only. Do you have any idea about this? Please clarify for me.

Hi Arun,

PF contribution from both EE & ER is 12% + 12% only. It's not 12.36%. But for ER, apart from the 12% contribution, there are administrative charges of 1.36%. So, for ER, we will consider it as 12% + 1.36% = 13.36%.

As you mentioned, many companies are including both EE & ER contributions in their CTC but not in the gross salary.

Dear Rmidnight,

Yes, the total PF contribution from the employer's side is 13.36%. It includes:
- PF Account: 3.67%
- Pension Account: 8.33%
- EDLI Account: 0.50%
- EDLI Admin Account: 0.01%
- PF Admin. Account: 0.85%

If you add these up, the total comes to 13.36%.

Thank you.

Hi,

On the side of the employee, the contribution is 12%. On the side of the employer, the contribution is 13.36%. The PF account contribution is 3.67%, while the pension account contribution is 8.33%. Additionally, the EDLI account contribution is 0.50%, the EDLI admin account contribution is 0.01%, and the PF admin account contribution is 0.85%.

Regards, Ubaid R.

Hi folks! As many of you mentioned, the employer's contribution is 13.36%, but I know that the employer's contribution is 13.61%. The breakdown is delineated below: EPF - 3.67% + EPS - 8.33% + EDLI - 0.5% + EPF & EPS Administrative Charges - 1.1% + EDLI Admin. Charges - 0.01% = 13.61% (Total). Is this breakdown correct or wrong? Would you please tell me?

PF Withdrawal Before Age 58

I have one more question. If an employee withdraws his/her PF before the age of 58, how much amount or percentage will be deducted from the PF account?

Hi Piyali,

Your calculation is not correct. The admin charges for account 2 have been revised from 1.1% to 0.85%. Therefore, the total is 12% from the employee (EE) and 12.5% from the employer (ER) - 8.33% as EPS and 3.67% as EPF. The admin charges for account no. 2 are 0.85%, EDLI charges for account no. 21 are 0.50%, and EDLI admin charges for account no. 22 are 0.01%.

Now, if any employee withdraws their PF, they will only receive their EE contribution.

PF Contribution Details

The PF total contribution share is 25.36%. Please find the following details for your perusal and record:

- A/c - 1 - 12% (Employee Share) PF
- A/c - 1 - 3.67% (Employer Share) PF
- A/c - 2 - 0.85% (Employer Share) Admin charges
- A/c - 10 - 8.33% (Employer Share) Pension
- A/c - 21 - 0.50% (Employer Share) EDLI
- A/c - 22 - 0.01% (Employer Share) EDLI Admin charges

Apart from Ms./Mrs. Piyali, PF admin charges under A/c - 2 have been revised and reduced from 1.10% to 0.85% starting January 2015.

Thanks & Regards,
Ashish Shaw

[Email Removed For Privacy Reasons]

Someone told me the employer's contribution to the PF is 13.65%. Please let me know the correct percentage.

No, it is wrong.

ER contribution is as follows:
PF Contribution = 12% (EPF 8.33 + EPS 3.67)
Account 2 Admin charges = 0.65%
Account 21 EDLI charges = 0.50%
Total contribution is 13.15%