Understanding PF Contributions: How Much Do Employees and Employers Pay on a 30,000 Rs Salary?

Dear Sir/Madam,

I have a query with respect to PF. If the basic salary is Rs. 30,000, what will be the employee's and employer's contributions? If possible, please support your answer with the relevant sections.

Mandatory contribution is limited to a salary of 15000. For example, employee contribution of 12% amounts to 1800, and employer contribution of 12% also amounts to 1800 (where 8.33% of 1250 is contributed to EPS, and the remaining 3.77% of 650 is contributed to EPF).

Above the 15000 limit, if the employer and employee both agree to voluntary contributions, then they will agree to pay 12% of both shares. However, the EPS share would be restricted to 1250 only.

So, is 12% of the employee's contribution and 3.67% of the employer's contribution calculated on $30,000? Additionally, is 8.33% of the employer's contribution calculated on $15,000?

Dear OMKAR B,

Yes, 12% of employee contribution and 3.67% of employer contribution will be calculated on 30,000, and 8.33% of employer contribution will be calculated on 15,000. There is a provision to contribute to EPS-95 on the full salary if the employee and employer wish. Kindly contact the Sub-Regional PF Commissioner's Office. If they are positive, you have to contribute 8.33% on 30,000 and 1.16% on 15,000 to EPS.

Abbas. P.S