EPF Employer Contribution Query
Please find attached the 21Useful Chart for TAX Compliance. I also have a query about the EPF Employer Contribution. According to this chart on page no. 13, the contributions are as follows: 8.33% or a maximum of Rs. 541 for the Pension Fund, EDLI 0.5% of Basic+DA or a maximum of Rs. 32.50, and EDLI admin charges 0.01% of Basic+DA or a maximum of Rs. 0.65.
Now, my query is: if an employee's Basic+DA is Rs. 8000, what is the contribution of the Employee and Employer?
For example:
- 8000 * 12% = 960 Employee's contribution
- 8000 * 3.67% = 294 PF Employer contribution
- 6500 * 8.33% = 541 Pension Contribution
- 8000 * 1.1% = 88 Admin Charges PF
- 6500 * 0.5% = 32.5 EDLI
- 6500 * 0.01% = 0.65 Admin Charges of EDLI
Now, the total is: Employee's contribution is 960 + Employer's Contribution is 956.15 = Rs. 1916.15. Is this correct or not? Please confirm.
Thanks,
Regards,
J.N. Modi
From India, New Delhi
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18Please find attached the 21Useful Chart for TAX Compliance. I also have a query about the EPF Employer Contribution. According to this chart on page no. 13, the contributions are as follows: 8.33% or a maximum of Rs. 541 for the Pension Fund, EDLI 0.5% of Basic+DA or a maximum of Rs. 32.50, and EDLI admin charges 0.01% of Basic+DA or a maximum of Rs. 0.65.
Now, my query is: if an employee's Basic+DA is Rs. 8000, what is the contribution of the Employee and Employer?
For example:
- 8000 * 12% = 960 Employee's contribution
- 8000 * 3.67% = 294 PF Employer contribution
- 6500 * 8.33% = 541 Pension Contribution
- 8000 * 1.1% = 88 Admin Charges PF
- 6500 * 0.5% = 32.5 EDLI
- 6500 * 0.01% = 0.65 Admin Charges of EDLI
Now, the total is: Employee's contribution is 960 + Employer's Contribution is 956.15 = Rs. 1916.15. Is this correct or not? Please confirm.
Thanks,
Regards,
J.N. Modi
From India, New Delhi
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Dear Modi, Thanks for sharing the nice and useful material, friend.
Calculation Breakdown
Basic = Rs. 8000/-
12% Employee PF = Rs. 960/-
12% - Rs. 541/- = Rs. 419/- Employer PF
Rs. 541/- or 8.33% EPS = Rs. 541/-
You can calculate the EDLI and Administrative charges for Rs. 8000/- and not on Rs. 6500/-. Hope you understand the calculation, Jay.
Regards,
Jay
From India, Kumbakonam
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Calculation Breakdown
Basic = Rs. 8000/-
12% Employee PF = Rs. 960/-
12% - Rs. 541/- = Rs. 419/- Employer PF
Rs. 541/- or 8.33% EPS = Rs. 541/-
You can calculate the EDLI and Administrative charges for Rs. 8000/- and not on Rs. 6500/-. Hope you understand the calculation, Jay.
Regards,
Jay
From India, Kumbakonam
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Dear Sir, Thanks you very much for Immediate reply, as same please find attached EFP Challan, Please check it and confirm us is it right or wrong? Thanks, Regards, J.N.Modi
From India, New Delhi
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From India, New Delhi
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Correction of EPF Contribution Calculation
Your interpretation of the guidelines and filling of the Challan is WRONG.
It should be the following:
• For Employee: 8000 * 12% = Rs 960 contribution for PF.
• For Employer: 8000 * 13.61% = Rs 1089 contribution (Pension Fund 8.33% up to Max Rs 6500: Rs 542 + PF: Rs 418 + EDLI/Admin Charges @ 1.61% as per the breakup = Rs 129 TOTAL: 542 + 418 + 129 = Rs 1089). (The round-off to the higher Rupee for each element may be more than Rs 1089)
Regards,
Rajusiachen
From India, Coimbatore
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Your interpretation of the guidelines and filling of the Challan is WRONG.
It should be the following:
• For Employee: 8000 * 12% = Rs 960 contribution for PF.
• For Employer: 8000 * 13.61% = Rs 1089 contribution (Pension Fund 8.33% up to Max Rs 6500: Rs 542 + PF: Rs 418 + EDLI/Admin Charges @ 1.61% as per the breakup = Rs 129 TOTAL: 542 + 418 + 129 = Rs 1089). (The round-off to the higher Rupee for each element may be more than Rs 1089)
Regards,
Rajusiachen
From India, Coimbatore
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EPF Challan - Format.xls
Compliance for EPF members going abroad 20.1.2015.pdf
EPF - Pension contribution is zero WHY.jpg