The Provident Fund (PF) contribution is 12% of PF Wages from both employee and employer. For the calculation, the maximum limit of Basic is Rs 6500/-. It means even if the employee’s PF Wages is above Rs 6500/-, the employer is liable to contribute only on Rs 6500/-, that is Rs 780/-.
However if an employee so desires he may voluntarily contribute more than 12%. Apart from it an employer also has to pay some administration charges. The various accounts of PF Challan are as mentioned below.
Employee
|
Employer
|
|
A/c No 1: PF contribution Account A/c No 2: PF Admin account A/c No 10: EPS account A/c No 21: EDLIS account A/c No 22: EDLIS admin account |
12
|
3.67
|
1.10
|
||
8.33
|
||
0.50
|
||
0.01
|
||
Total |
12
|
13.61
|
PF admin charge = Employer has to pay 1.1 % of pf wages
EDLIS: Employer has to pay 0.5% of pf wages
EDLIS admin charge:Employer has to pay 0.01% of pf wages.
Hence, total additional percentage employer has to pay is rupees : 1.61% of basic so employer has actually to pay 13.61 % of Basic and employee has to pay only 12% of pf wages.
Employees complete 12% goes to PF account while employer contributions’ 8.33% goes to Pension Fund and 3.67% goes to PF Fund.
Employee State Insurance Corporation(ESIC) is deducted on gross salary which is 1.75% from the employee contribution & 4.75% from the employer contribution.