Understanding PF Contributions: How Much Should You Contribute from a Rs 60,600 Salary?

Kindly let me know which amount of PF shall be contributed if the total pay is Rs 60,600 per month and basic+DA is Rs 21,252. What shall be the employee's share, EPS share, and ES?

What is the benefit under the EDLI Scheme of EPFO?

Dear Anamika,

PF contribution will be deducted on Basic+DA by your employer based on earnings at 12%. Please download EPF Passbook to view the details of remittance to EPF.

Thank you.

Employee share: 2550
Employer share: 2763
Pension: 1250
Employer PF: 1300
EDLI: 106.5
Admin charges: 106.5

EDLI is the Employee Deposit Linked Insurance scheme where the employee is insured for an amount ranging between 250,000 to 600,000. This amount depends on a formula, i.e., the employee's salary not exceeding 15,000 multiplied by 30 times plus 40% of the amount in the PF, not exceeding 150,000, totaling 600,000.

Can an employee receive IDLI benefits only after death or after retirement? Please suggest if there is any upper cap of Rs. 1800 for PF contribution, as 12% of basic + DA but not more than Rs. 1800.

Kindly suggest the calculation.

Thanks

EDLI benefits are for death cases.
The calculation provided in my post is for the amount 21252/-. However, if your employer had capped the contribution to 15000/-, then it will be 1800/- only, irrespective of your basic and DA.

Hi Aniket Ji,

Please find attached annexure regarding EPFO. In the note section, under EPF, point no. 1, please clarify.

Thank you.

PF Contribution and Voluntary Contribution

The employer is at liberty to restrict the PF contribution as per the current wage ceiling of Rs. 15,000/- even if he pays more than Rs. 15,000 (Basic + DA or only basic). In your case, the Basic + DA is Rs. 21,252/-. It is up to you to decide whether you want to contribute on the entire amount of Rs. 21,252/-.

In case the employee wants to contribute more than the statutory wage ceiling, he can do so as a Voluntary Contribution, in which the employer has no liability to contribute (employer share) on the amount of voluntary contribution.

Our friend Ankit has given the calculation based on Rs. 21,252/-.

EDLI Scheme Benefits

The EDLI is payable in the event of the death of the employee to his nominee/legal heir.

Regards,
P.S. Lakshmanan
S. G. Management Services
(PAN INDIA Consultant – Labour Law Compliance, PF, ESI, P Tax, Benefit Management & POSH COMPLIANCE) - KOLKATA