Employees Provident fund organization, India (EPFO)
EPF rates and calculation
SANJU(HR)602
The Epf & MP (Miscellaneous provision act)act was came in to existence from March 14th 1952.The act is applicable all over India except the state of Jam mu and Kashmir. Presently the following three schemes are providing to employees under this act.
1. Employee provident fund scheme (EPF) 1952.
2. Employees’ pension scheme (EPS) 1995
3. Employees deposit linked insurance (EDLIS) 1976.
An establishment with 20 or more workers should register with Employees provident fund organization which comes under any of the 180 industries mentioned. Even though there are certain exemptions are there will be discussed in another post. Here we mainly aimed for EPF rates and its calculation.
EPF, EPS, EDLIS rates in India:-
EPF, EPS and EDLIS are calculated on Basic salary, dearness allowances, cash value of food concession and retaining allowances if any.
“Retaining allowances means an allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working, for retaining his services.”
Most of the organizations are following Basic+ DA Method. Below table tells you the rates of contribution of EPF, EPS, EDLI, Admin charges in India.
Scheme Name
Employee contribution
Employer contribution
Paid to A/c No
Employee provident fund
12%
3.67%
1
Employees’ Pension scheme
0
8.33%
10
Employees Deposit linked insurance
0
0.5%
21
EPF Administrative charges
0
1.1%
2
EDLIS Administrative charges
0
0.01%
22
Sick industries like beedi, jute, guar gum factories, coir industry other than spinning sector
Scheme Name
Employee contribution
Employer contribution
Paid to A/c No
Employee provident fund
10%
1.67%
1
Employees’ Pension scheme
0
8.33%
10
Employees Deposit linked insurance
0
0.5%
21
EPF Administrative charges
0
1.1%
2
EDLIS Administrative charges
0
0.01%
22
Inspection charges payable by employer
Inspection charges must be paid by the employer in the following Cases.
1. Some establishment are exempted from EDLI contribution as they are providing the same nature of benefit without any contributions from employee, such establishments are liable to pay 0.005% on Basic salary
2. The establishments exempted under the scheme should pay 0.18% of Basic salary towards inspection charges.
EPF Ceiling Limit:-
Epf ceiling limit is fixed to 6500/-.The employer is liable to pay contribution only on 6500/- Whatever is the basic salary.
Calculation of Employees provident fund:-
Let us calculate the contribution of an employee who is getting a basic salary of Rs 3500/-
Contribution Towards
Calculation
Amount
EPF Employees share
3500 x 12%
420
EPS Employer share
3500 x 8.33%
292
EPF employer share
3500 x 3.67%
128
EDLI charges
3500 x 0.5%
18
EPF Admin charges
3500 x 1.1%
39
EDLI Admin charges
3500 x 0.01%
0.35 ( round up to Rs 1/-)
The above calculation is easy and there no complication.
Calculation of EPF for employees getting a basic salary over and above the ceiling limit 6500/-
In such cases companies uses different method for calculation as per their pay roll policy.
Consider an employee getting a basic salary of 7500/-
We can calculate it in different ways. The only thing you should take care is, EPS is calculated only up to 6500/- that means the maximum amount is fixed to Rs 541.00. The three methods mentioned below are based on the above example.
Method-1
If your company consider total basic salary above the limit fixed 6500.00 for PF calculation.
Contribution Towards
Calculation
Amount
EPF Employees share
7500 x 12%
900
EPS Employer share
6500 x 8.33%
541
EPF employer share
7500 x 12% (-) 541
359
EDLI charges
6500 x 0.5%
32.5
EPF Admin charges
6500 x 1.1%
71.5
EDLI Admin charges
6500 x 0.01%
0.65 ( Round up to Rs 1/-)
I will explain how Employer contribution of EPS and EPF is calculated.
Employer is decided to contribute on total basic salary which is 12 % on 7500.00 equal to 900.00
EPS Share is fixed to 541.00
Balance (900-541) goes to EPF account 359.00
Total share 900.00
Out of Rs 900.00 EPS share is RS 541/- which is fixed for a basic salary greater than 6500/-. The balance amount is 900-541 = 359.00 which will go to EPF account.
You may be thinking that, what about 3.67%?, Here you don’t need to care about it.
Method2
Some companies follows the below method in which employee share is calculated on 7500/- and employer share is calculated on up limit Rs 6500/-
Contribution Towards
Calculation
Amount
EPF Employees share
7500 x 12%
900
EPS Employer share
6500 x 8.33%
541
EPF employer share
6500 x 3.67%
239
EDLI charges
6500 x 0.5%
33
EPF Admin charges
6500 x 1.1%
72
EDLI Admin charges
6500 x 0.01%
0.65 ( Round up to Rs 1/-)
Method3
Some are calculating both employer and employee shares on 6500/- in spite of higher basic salary than 6500.00
Contribution Towards
Calculation
Amount
EPF Employees share
6500 x 12%
780
EPS Employer share
6500 x 8.33%
541
EPF employer share
6500 x 3.67%
239
EDLI charges
6500 x 0.5%
33
EPF Admin charges
6500 x 1.1%
72
EDLI Admin charges
6500 x 0.01%
0.65 ( Round up to Rs 1/-)
Remittance of contribution:-
It is the duty of employer to remit the contribution deducted to the government before 15th of the following month.
Employer interest Liability:-
Employers are liable to pay @12% interest on late payment of EPF, EPS, EDLI, Administrative charges
Damage liability:-
An employer is remitting EPF, EPS, EDLI, and Admin charges late shall be liable to pay damages as penalty ranging from 17% to 37% depending up on delay.
I don’t think the above post is a complete one, if you have different opinion and experience we can discuss it in our comment section that will make this post a complete one.
In the meantime you can subscribe our newsletter below to stay updated with us.
Baldev Singh Thakur
8091802496
From India, Delhi
2EPF rates and calculation
SANJU(HR)602
The Epf & MP (Miscellaneous provision act)act was came in to existence from March 14th 1952.The act is applicable all over India except the state of Jam mu and Kashmir. Presently the following three schemes are providing to employees under this act.
1. Employee provident fund scheme (EPF) 1952.
2. Employees’ pension scheme (EPS) 1995
3. Employees deposit linked insurance (EDLIS) 1976.
An establishment with 20 or more workers should register with Employees provident fund organization which comes under any of the 180 industries mentioned. Even though there are certain exemptions are there will be discussed in another post. Here we mainly aimed for EPF rates and its calculation.
EPF, EPS, EDLIS rates in India:-
EPF, EPS and EDLIS are calculated on Basic salary, dearness allowances, cash value of food concession and retaining allowances if any.
“Retaining allowances means an allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working, for retaining his services.”
Most of the organizations are following Basic+ DA Method. Below table tells you the rates of contribution of EPF, EPS, EDLI, Admin charges in India.
Scheme Name
Employee contribution
Employer contribution
Paid to A/c No
Employee provident fund
12%
3.67%
1
Employees’ Pension scheme
0
8.33%
10
Employees Deposit linked insurance
0
0.5%
21
EPF Administrative charges
0
1.1%
2
EDLIS Administrative charges
0
0.01%
22
Sick industries like beedi, jute, guar gum factories, coir industry other than spinning sector
Scheme Name
Employee contribution
Employer contribution
Paid to A/c No
Employee provident fund
10%
1.67%
1
Employees’ Pension scheme
0
8.33%
10
Employees Deposit linked insurance
0
0.5%
21
EPF Administrative charges
0
1.1%
2
EDLIS Administrative charges
0
0.01%
22
Inspection charges payable by employer
Inspection charges must be paid by the employer in the following Cases.
1. Some establishment are exempted from EDLI contribution as they are providing the same nature of benefit without any contributions from employee, such establishments are liable to pay 0.005% on Basic salary
2. The establishments exempted under the scheme should pay 0.18% of Basic salary towards inspection charges.
EPF Ceiling Limit:-
Epf ceiling limit is fixed to 6500/-.The employer is liable to pay contribution only on 6500/- Whatever is the basic salary.
Calculation of Employees provident fund:-
Let us calculate the contribution of an employee who is getting a basic salary of Rs 3500/-
Contribution Towards
Calculation
Amount
EPF Employees share
3500 x 12%
420
EPS Employer share
3500 x 8.33%
292
EPF employer share
3500 x 3.67%
128
EDLI charges
3500 x 0.5%
18
EPF Admin charges
3500 x 1.1%
39
EDLI Admin charges
3500 x 0.01%
0.35 ( round up to Rs 1/-)
The above calculation is easy and there no complication.
Calculation of EPF for employees getting a basic salary over and above the ceiling limit 6500/-
In such cases companies uses different method for calculation as per their pay roll policy.
Consider an employee getting a basic salary of 7500/-
We can calculate it in different ways. The only thing you should take care is, EPS is calculated only up to 6500/- that means the maximum amount is fixed to Rs 541.00. The three methods mentioned below are based on the above example.
Method-1
If your company consider total basic salary above the limit fixed 6500.00 for PF calculation.
Contribution Towards
Calculation
Amount
EPF Employees share
7500 x 12%
900
EPS Employer share
6500 x 8.33%
541
EPF employer share
7500 x 12% (-) 541
359
EDLI charges
6500 x 0.5%
32.5
EPF Admin charges
6500 x 1.1%
71.5
EDLI Admin charges
6500 x 0.01%
0.65 ( Round up to Rs 1/-)
I will explain how Employer contribution of EPS and EPF is calculated.
Employer is decided to contribute on total basic salary which is 12 % on 7500.00 equal to 900.00
EPS Share is fixed to 541.00
Balance (900-541) goes to EPF account 359.00
Total share 900.00
Out of Rs 900.00 EPS share is RS 541/- which is fixed for a basic salary greater than 6500/-. The balance amount is 900-541 = 359.00 which will go to EPF account.
You may be thinking that, what about 3.67%?, Here you don’t need to care about it.
Method2
Some companies follows the below method in which employee share is calculated on 7500/- and employer share is calculated on up limit Rs 6500/-
Contribution Towards
Calculation
Amount
EPF Employees share
7500 x 12%
900
EPS Employer share
6500 x 8.33%
541
EPF employer share
6500 x 3.67%
239
EDLI charges
6500 x 0.5%
33
EPF Admin charges
6500 x 1.1%
72
EDLI Admin charges
6500 x 0.01%
0.65 ( Round up to Rs 1/-)
Method3
Some are calculating both employer and employee shares on 6500/- in spite of higher basic salary than 6500.00
Contribution Towards
Calculation
Amount
EPF Employees share
6500 x 12%
780
EPS Employer share
6500 x 8.33%
541
EPF employer share
6500 x 3.67%
239
EDLI charges
6500 x 0.5%
33
EPF Admin charges
6500 x 1.1%
72
EDLI Admin charges
6500 x 0.01%
0.65 ( Round up to Rs 1/-)
Remittance of contribution:-
It is the duty of employer to remit the contribution deducted to the government before 15th of the following month.
Employer interest Liability:-
Employers are liable to pay @12% interest on late payment of EPF, EPS, EDLI, Administrative charges
Damage liability:-
An employer is remitting EPF, EPS, EDLI, and Admin charges late shall be liable to pay damages as penalty ranging from 17% to 37% depending up on delay.
I don’t think the above post is a complete one, if you have different opinion and experience we can discuss it in our comment section that will make this post a complete one.
In the meantime you can subscribe our newsletter below to stay updated with us.
Baldev Singh Thakur
8091802496
From India, Delhi
Dear All,
Pls. find attached herewith a Form 13 (Revised) EPF Transfer Claim Form of New Format.
TRANSFER CLAIM FORM CLAIM ID___________________________ FORM 13 (REVISED) (For EPFO Use only)
EMPLOYEES’ PROVIDENT FUND SCHEME, 1952
(PARA 57)
To, To,
The Regional P F Commissioner, Trust Name: ___________________________________
Office Name: SHIMLA______________ Trust Address: _________________________________
Office Address: BLOCK NO. 34, 1st & 2nd Floor _____________________________________________
SDA COMPLEX KASUMPTI SHIMLA-171009 _____________________________________________
(Please see instruction 3) (in case the PF A/C is with Exempted Establishment)
Sir,
I request that my provident fund balance along with my pension service details may please be transferred to my present account under intimation to me. My details are as under:
PART A: PERSONAL INFORMATION
1. *Name: __________________________________________________ __________________________
2. *Father’s/Husband’s name: __________________________________________________ __________
3. Mobile number: ______________________ 4. E-mail id: _____________________________________
5. Bank A/C number: ____________________ 6. IFS code of Bank branch: ________________________
PART B: DETAILS OF PREVIOUS ACCOUNT (WHICH IS TO BE TRANSFERRED)
1. *PF Account No. : __________________________________________________ __________________
In case the previous establishment is exempted under Employees’ Provident Fund Scheme,1952
Pension Fund Account No. :_________________________________________________ ______________
2. *Name and Address of the previous establishment: _________________________________________
__________________________________________________ ___________________________________
3. *PF Account is held by: (Name of EPF Office/ PF Trust) ______________________________________
4. *Date of Birth: ______________ (dd/mm/yyyy) 5. *Date of joining :______________(dd/mm/yyyy)
6. *Date of leaving: _____________ (dd/mm/yyyy)
PART C: DETAILS OF PRESENT ACCOUNT
1. *PF Account No. :_________________________________________________ ____________________
In case the present establishment is exempted under Employees’ Provident Fund Scheme,1952
Pension Fund Account No. :_________________________________________________ ______________
2. *Name and Address of the present establishment: __________________________________________
__________________________________________________ ____________________________________
3. *Account is held by: (Name of EPF Office / PF Trust) ___________________________________________
4. *Date of joining :___________________(dd/mm/yyyy)
5. #Name of Trust (to whom funds are to be paid in case of present establishment being exempted under EPF Scheme, 1952) :_________________________________________________ ______________________
6. #Employee code under the Trust: __________________________________________________ ________
(* indicates mandatory fields) (# Strike off if not applicable)
I, Certify that all the information given above is true to the best of my knowledge and I have ensured the correctness of my present and previous account numbers.
Signature of the Member
Date: ________________
IMPORTANT: Member has the option to get the claim form attested by present or previous employer. In case of attestation by the previous employer, time taken in settlement will be relatively less.
Certified that I have verified the data in Part B in respect of the member mentioned in Part A of this form and the signature of the member.
Signature of Previous Employer
Seal of the Establishment Date: _____________________
OR
Certified that I have verified the data in Part C in respect of the member mentioned in Part A of this form.
Signature of Present Employer
Seal of the Establishment Date: _____________________
__________________________________________________ ____________________________________
INSTRUCTIONS AND GUIDELINES
1. The Bank A/C details are for verification purpose even if the Fund is transferred to the EPFO Office/Trust maintaining the present account number.
2. In case the Previous Account was maintained by PF Trust of the exempted establishment, the member should submit a Transfer Claim Form {Form-13(Revised)} to the Trust while sending another Transfer Claim Form {Form-13(Revised)} to the PF Office for transferring the service details under the Pension Fund to the new account.
3. The Form should be submitted to that PF Office under which previous or the present account is maintained, depending upon as to which employer has attested the claim. (In case the claim is attested by the present employer, claim should be submitted with the PF Office under which the present account is maintained, and so on).
4. The mobile number (wherever provided) of the member would be used for sending an SMS alert informing him/her the processing of his/her claim and is non-mandatory for Physical form.
From India, Delhi
Pls. find attached herewith a Form 13 (Revised) EPF Transfer Claim Form of New Format.
TRANSFER CLAIM FORM CLAIM ID___________________________ FORM 13 (REVISED) (For EPFO Use only)
EMPLOYEES’ PROVIDENT FUND SCHEME, 1952
(PARA 57)
To, To,
The Regional P F Commissioner, Trust Name: ___________________________________
Office Name: SHIMLA______________ Trust Address: _________________________________
Office Address: BLOCK NO. 34, 1st & 2nd Floor _____________________________________________
SDA COMPLEX KASUMPTI SHIMLA-171009 _____________________________________________
(Please see instruction 3) (in case the PF A/C is with Exempted Establishment)
Sir,
I request that my provident fund balance along with my pension service details may please be transferred to my present account under intimation to me. My details are as under:
PART A: PERSONAL INFORMATION
1. *Name: __________________________________________________ __________________________
2. *Father’s/Husband’s name: __________________________________________________ __________
3. Mobile number: ______________________ 4. E-mail id: _____________________________________
5. Bank A/C number: ____________________ 6. IFS code of Bank branch: ________________________
PART B: DETAILS OF PREVIOUS ACCOUNT (WHICH IS TO BE TRANSFERRED)
1. *PF Account No. : __________________________________________________ __________________
In case the previous establishment is exempted under Employees’ Provident Fund Scheme,1952
Pension Fund Account No. :_________________________________________________ ______________
2. *Name and Address of the previous establishment: _________________________________________
__________________________________________________ ___________________________________
3. *PF Account is held by: (Name of EPF Office/ PF Trust) ______________________________________
4. *Date of Birth: ______________ (dd/mm/yyyy) 5. *Date of joining :______________(dd/mm/yyyy)
6. *Date of leaving: _____________ (dd/mm/yyyy)
PART C: DETAILS OF PRESENT ACCOUNT
1. *PF Account No. :_________________________________________________ ____________________
In case the present establishment is exempted under Employees’ Provident Fund Scheme,1952
Pension Fund Account No. :_________________________________________________ ______________
2. *Name and Address of the present establishment: __________________________________________
__________________________________________________ ____________________________________
3. *Account is held by: (Name of EPF Office / PF Trust) ___________________________________________
4. *Date of joining :___________________(dd/mm/yyyy)
5. #Name of Trust (to whom funds are to be paid in case of present establishment being exempted under EPF Scheme, 1952) :_________________________________________________ ______________________
6. #Employee code under the Trust: __________________________________________________ ________
(* indicates mandatory fields) (# Strike off if not applicable)
I, Certify that all the information given above is true to the best of my knowledge and I have ensured the correctness of my present and previous account numbers.
Signature of the Member
Date: ________________
IMPORTANT: Member has the option to get the claim form attested by present or previous employer. In case of attestation by the previous employer, time taken in settlement will be relatively less.
Certified that I have verified the data in Part B in respect of the member mentioned in Part A of this form and the signature of the member.
Signature of Previous Employer
Seal of the Establishment Date: _____________________
OR
Certified that I have verified the data in Part C in respect of the member mentioned in Part A of this form.
Signature of Present Employer
Seal of the Establishment Date: _____________________
__________________________________________________ ____________________________________
INSTRUCTIONS AND GUIDELINES
1. The Bank A/C details are for verification purpose even if the Fund is transferred to the EPFO Office/Trust maintaining the present account number.
2. In case the Previous Account was maintained by PF Trust of the exempted establishment, the member should submit a Transfer Claim Form {Form-13(Revised)} to the Trust while sending another Transfer Claim Form {Form-13(Revised)} to the PF Office for transferring the service details under the Pension Fund to the new account.
3. The Form should be submitted to that PF Office under which previous or the present account is maintained, depending upon as to which employer has attested the claim. (In case the claim is attested by the present employer, claim should be submitted with the PF Office under which the present account is maintained, and so on).
4. The mobile number (wherever provided) of the member would be used for sending an SMS alert informing him/her the processing of his/her claim and is non-mandatory for Physical form.
From India, Delhi
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EMPLOYEES' PROVIDENT FUND & MISC PROVISIONS ACT '1952.ppt
EMPLOYEES' PROVIDENT FUND & MISC PROVISIONS ACT '1952 [Compatibility Mode].pdf