Understanding EPF Contributions: How Does the 12% from Both Sides Really Work?

arjun-scream-dora

EPF Contribution Breakdown

EPF is 12% by the employee and 12% by the employer, which equals 24% plus 1% of the basic. For example, if the basic amount is 100 Rs, the deduction would be 12% + 12% = 24, resulting in 100 - 24 = 76 as the salary to be handed over.

Madhu.T.K

No, only 12% of the salary is to be deducted, and the other 12%, plus the administration charges and EDLI contribution, are payable by the employer and cannot be deducted from the salary.

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