PRESENT RATES OF CONTRIBUTION TO CONTRIBUTION AND ADMINISTRATION ACCOUNTS OF EPF, EPS AND EDLI
| BY | CONTRIBUTION ACCOUNTS | ADMINISTRATION ACCOUNTS | |||
| EPF | EPS | EDLI | EPF@@ | EDLI @@ | |
| EMPLOYEE | 12% /10% ## | 0 | 0 | 0 | 0 |
| EMPLOYER | Difference of EE share and Pension Contribution | 8.33% ## | 0.5% ## | 0.50% !!
[w.e.f. 01-06-2018] |
0
[w.e.f. 01-04-2017] |
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/-
@@ 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 contributions are payable on maximum wage ceiling of Rs. 15000/-
> The employee can pay at a higher rate and in such case employer is not under any obligation to pay at such higher rate.
> To pay 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 membership 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.
RATE OF PF CONTRIBUTION SINCE 1952
| Period | Rate | Payable on |
| 01.11.1952 to 31.03.1956 | 1 aana per rupee | Total basic wages, DA and Food concession by both employers & employee |
| 01.04.1956 to 31.03.1971 | 6.25% | Total basic wages, DA and Food concession by both employers & employee |
| 01.04.1971 to 31.07.1988 |
6.25%, Enhanced rate 8%
|
Total basic wages, DA and Food concession by both employers & employee |
| As on 31st March 1972, the enhanced rate of 8 per cent ‘was applicable to the establishments employing 50 or more persons. | ||
| 01.08.1988 to 31.05.1990 | 8.33% | Total basic wages, dearness allowance (including the cash value of any food concession) and retaining allowance (if any) payable to each employee who is a subscriber |
| 01.06.1990 to 08.04.1997 |
8.33%, Enhanced rate 10%
|
Total basic wages, dearness allowance (including the cash value of any food concession) and retaining allowance (if any) payable to each employee who is a subscriber. |
| As on 31st March 1991, the enhanced rate of 10 per cent ‘was applicable to the establishments employing 50 or more persons. | ||
| 09.04.1997 to 21.09.1997 |
8.33%, Enhanced rate 10% | Notification dated 9th April, 1997 was issued enhancing Provident Fund contribution rate from 8.33% to 10%. With this 172 categories of industries/establishments out of 177 categories notified were to pay Provident Fund contribution @ 10% w.e.f. 1.5.1997. |
| 22.09.1997 onwards | 10%, Enhanced rate 12% | a) Establishment paying contribution @ 8.33% to 10%
b) Establishment paying contribution @10% to 12% |
EPF ADMINISTRATIVE CHARGES PAYABLE BY THE EMPLOYERS OF UN-EXEMPTED ESTABLISHMENTS
| Period | Rate | Reckoned on |
| 01.11.1952 to 31.12.1962 | 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%. | |
| 01.10.1964 to 30.11.1978 | 0.37% | On total pay on which contributions are payable. |
| 01.12.1978 to 30.09.1986 | 0.37% | On total pay on which contributions are payable. Minimum Administrative charges payable per month per establishment was Rs. 5/-. |
| 01.10.1986 to 31.07.1998 | 0.65% | On total pay on which contributions are payable. Minimum Administrative charges payable per month per establishment was Rs. 5/-. |
| 01.08.1998 to 31-12-2014 | 1.10% | On total pay on which contributions are payable. Minimum Administrative charges payable per month per establishment is Rs. 5/-. |
| 01.01.2015 to 31.03.2017 | 0.85% | On total pay on which contributions are payable. Minimum Administrative charges payable per month per establishment is Rs. 500/-. |
| 01.04.2017 to 31.05.2018 | 0.65% | On total pay on which contributions are payable. Minimum Administrative charges payable per month per establishment is Rs. 500/-. |
| 01.06.2018 onwards | 0.50% | 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. |
Latest Employer PF Calculation from October 2018