PRESENT RATES OF CONTRIBUTION

Article cover Rate of Contribution under Employee Pension Scheme (EPS), Employees’ Provident Fund (EPF) and Employee Deposit Linked Insurance (EDLI) Scheme

BY CONTRIBUTION ACCOUNTS ADMINISTRATION ACCOUNTS
EPF contribution
EPS EDLI EPF @@ EDLI @@
EMPLOYEE 12% /10% ## 0 0 0 0
EMPLOYER Difference of EE
share and Pension
Contribution
8.33% ## 0.5% ## 0.85% !!

[w.e.f. 01-01-2015]

0.01% $$

10% rate is applicable for

  • Any establishment in which less than 20 employees are employed.
  • Any sick industrial company and which has been declared as such by the Board for Industrial and Financial Reconstruction
  • Any establishment which has at the end of any financial year, accumulated losses equal to or exceeding its entire net worth and
  • Any establishment in following industries:-

(a) Jute (b) Beedi (c) Brick (d) Coir and (e) Guar gum Factories.

## Contribution is rounded to the nearest rupee for each employee, for the employee share, pension contribution and EDLI contribution. The Employer Share is difference of the EE Share (payable as per statute) and Pension Contribution.

!! Monthly payable amount under EPF Administrative charges is rounded to the nearest rupee and a minimum of Rs 500/- is payable.

Note:- If the establishment has no contributory member in the month, the minimum administrative charge will be Rs 75/-

$ $ Monthly payable amount under EDLI Administrative charges is rounded to the nearest rupee and a minimum Rs 200/-is payable.

Note:- If the establishment has no contributory member in the month, the minimum administrative charge will be Rs 25/-

@@ In case Establishment is exempted under PF Scheme, Inspection charges @0.18%, minimum Rs

5/- is payable in place of Admin charges.

In case the Establishment is exempted under EDLI Scheme, Inspection charges @ 0.005%, minimum Re 1/- is payable in place of Admin charges.

Notes:

UNDER EPF

  • The EPF contributions are payable on maximum wage ceiling of Rs 15000/- by employee and employer.
  • The employee can pay EPF contributions at a higher rate and in such case employer is not under any obligation to pay at such higher rate.
  • To pay EPF contribution on higher wages, a joint request from Employee and employer is required [Para 26(6) of EPF Scheme]. In such case employer has to pay administrative charges on the higher wages (wages above 15000/-)
  • For an International Worker, wage ceiling of 15000/- is not applicable.

UNDER EPS

  • Contribution is payable out of the employer’s share of PF and no contribution is payable by employee.
  • Pension contribution not to be paid:

When an employee crosses 58 years of age and is in service (EPS members ceases on completion of 58 years).

When an EPS pensioner is drawing Reduced Pension and re-joins as an employee.

In both the cases the Pension Contribution @8.33% is to be added to the Employer Share of PF. (Pension contribution is not to be diverted and total employer share goes to the PF).

In case an employee, who is not existing EPF/EP member joins on or after 01-09-2014 with wages above Rs 15000/-

In these cases the pension contribution part will be added to employee share, EPF.

  • In all other cases Pension Contribution is payable. A member joining after 50 years age, if not a pensioner does not have choice of not getting the Pension Contribution on grounds that he will not complete 10 years of eligible service. The social security cover is applicable till he/she is a member.
  • For International Worker, higher wage ceiling of 15000/- is not applicable from 11-09-2010.

Note:- In case an existing EPS member (as on 01-09-2014)whose Pension contribution was paid erstwhile EPS wage ceiling of 6500/- contribution to contribution above Rs 15000/- wage ceiling from 01-09-2014 he will have to give a fresh consent and an amount of 1.16% on wages above 15000/- will have to be contributed by him in pension Fund (A/C No 10) through the employer.

UNDER EDLI:

1. Contribution to be paid on up to maximum wage ceiling of 15000/- even if PF is paid on higher wages.

2. Each contribution is to be rounded to nearest rupee. (Example for each employee getting wages above 15000, amount will be 75/-)

3. EDLI contribution to be paid even if member has crossed 58 years age and pension contribution is not payable. This is to be paid as long as the member is in service and PF is being paid.

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RATE OF PF CONTRIBUTION SINCE 1952
Period Rate Payable on
01.11.1952 31.03.1956 to 1 anna per rupee Total basic wages, DA and Food concession by employee both employers &
01.04.1956

to
31.03.1971

6.25% Total basic wages, DA and Food concession by            both employers &
employee
01.04.1971 to 6.25%, Total basic wages, DA and Food concession by            both employers &
31.07.1988 Enhanced employee
rate As on 31st March 1972, the enhanced rate of 8 per cent ‘was
8% applicable to the establishments employing 50 or more persons.
01.08.1988 to 8.33% Total basic wages, dearness allowance (including the cash value of
31.05.1990 any food concession) and retaining allowance (if any) payable to
01.06.1990 to 8.33%, eachemployee who is a subscriber.

Total basic wages, dearness allowance (including the cash value of

08.04.1997 Enhanced any food concession) and retaining allowance (if any) payable to
rate 10% each As on employee31st Marchwho1991,is a the subscriber.enhanced rate of 10 per cent ‘was applicable to the establishments employing 50 or more persons.
09.04. 1997 to 8.33%, Notification dated 9th April, 1997 was issued enhancing Provident
21.09.1997 Fund contribution rate from 8.33% to 10%. With this 172 categories
Enhanced of industries/establishments out of 177 categories notified were to
rate 10% pay Provident Fund contribution @ 10% w.e.f. 1.5.1997.
22.09.1997 onwards 10%, a)     Establishment     paying    contribution     @    8.33%        to                          10%        b)
Establishment paying contribution @10% to 12%
Enhanced rate
EPF ADMINISTRATIVE CHARGES PAYABLE BY THE EMPLOYERS OF UN-EXEMPTED
Period Rate S Reckoned on
01.11.1952 to 3 1.12.1962 3% Total employers’ and employees’ contributions.
01.01.1963 to 30.09.1964 3% Total employer’s and employees’ contributions payable @ 6.25%.
2.4% Total employer’s and employees’ contributions payable @ 8%.
1.10.1964 to 30.11.1978 0.37% On total pay on which contributions are payable.
01.12.1978 0.37% On total pay on which contributions are payable. Minimum Administrative
to 30.09.1986 charges payable per month per establishment was Rs. 5/-.
01.10.1986 0.65% On total pay on which contributions are payable. Minimum Administrative
to 31.07.1998 charges payable per month per establishment was Rs. 5/-.
01.08.1998 1.10% On total pay on which contributions are payable. Minimum Administrative
to 31-12-2014 charges payable per month per establishment is Rs. 5/-.
01.01.2015 onwards 0.85% On total pay on which contributions are payable. Minimum Administrative charges payable per month per establishment is Rs. 500/-.

 

EPF INSPECTION CHARGES PAYABLE BY THE EMPLOYERS OF EXEMPTED ESTABLISHMENTS
Period Rate Reckoned on
01.11.1952                                 to
31.12.1962
0.75% On total employees’ and employer’s contributions payable @ 6.25%.
01.01.1963                                 to
30.09.1964
0.75% On total employees’ and employer’s contributions payable @ 6.25%.
0.60% On total employees’ and employer’s contributions payable @ 8%.
01.10.1964 to 31.07.98 0.09% On total pay on which contributions are payable.
01.08.1998 onwards 0.18%

On total pay on which contributions are payable.

Source- http://www.epfindia.com/site_docs/PDFs/MiscPDFs/ContributionRate.pdf

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Category : Corporate Law (3528)
Type : Articles (14979)
Tags : EDLI (6) EPF (251) new pension scheme (45) pension scheme (59)

5 responses to “Present Rates of Contribution under EPF, EPS and EDLI”

  1. Rakesh pandya says:

    if my contract is over then i leave all staff that time how much time and how much rRS. . is this pf challan fill compalsory?

  2. Jaiwant Sonar says:

    Dear Sir/Madam,
    I am Jaiwant Sonar, I wants to know about contribution of Employee and Employer on PF, and on which payment it is deducted, How many % of Employee and Employer deducted. Please give me the details of it . Waiting for your reply. My email Id is
    jp_sonar@yahoo.com
    Thanks and regards
    Jaiwant Sonar
    9921630047

  3. ajith says:

    EPF employer rate is changed from 25.36 to 25.16

  4. Bandhu Patil says:

    Useful update to employees and employers too

  5. VINODKUMAR G MENON says:

    very informative summary related to EPF/EPS&EDLI

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