Understanding EPF and EPS Limits: How Much Can Be Deducted from a 25,000 Salary?

Please clarify EPF and EPS deposit updated limits. Suppose the Basic Salary is 25,000/- and HRA and other allowances are Rs. 15,000/-. For PF at 12%, how much can be deducted and deposited?

The maximum deduction on the Basic Salary of 15,000/- (maximum limit) x 12% = 1,800/-. Alternatively, can the deduction be on the Basic Salary of 25,000/- x 12% = 3,000/-?

Thank you.

Rs 15,000/- is the maximum limit of salary, i.e., basic and DA, for the deduction of EPF contribution amount as per the EPF Act. However, it's up to the employer and employee if they mutually agree to deduct EPF contribution at a higher rate of salary.