Employment provident fund is one of most useful benefits for every employee who is applicable for this scheme. This scheme was not applicable before 1952 in India. After getting independence from British rulers, Indian government is trying to implement new rules and regulations and benefits to employees who are working for private organizations and government organizations. Then they thought of this EPF and Indian government introduced and implemented Employee’s Provident Fund and its miscellaneous Provisions Act in 1952 under Ministry of Labour and Employment of India.
As per this EPF scheme, companies which are maintaining twenty or more than twenty employees, in those employees who are earning equal or below than 15000 INR per month as a salary they are mandatory for registering an EPF account. And those who are earning more than 15000 INR also their wish to join in this EPF account. Now, most companies are giving EPF facility to their employees. This EPF amount should not be withdrawn up to employee age near 60 to 62 or up to their retirement time.
Because, if an employee is eligible for this EPF scheme, there will be a deduction of 12 % amount from their salary to their EPF account. Simultaneously, employer should give same. Here, is a small note, employer contributing 12% amount to employee EPF account. In this 12%, 8.33% amount will be contributing to Employee’s pension scheme and remaining 3.67% of amount to employee EPF account. Additionally, employer should pay 0.5% to EDLI, Employees Deposit Linked Insurance Scheme and 0.65% of amount to EPF administrative charges and 0.01% of amount for EDLI handling fee.
How EPF Deductions for an employee and employer?
Here, below example clearly gives an idea regarding EPF deductions for employee EPF account.
Nikhil is working with an organization called ABC, and this organization offering EPF scheme for their employees. Nikhil monthly basic salary is 20000 INR. So, there will be a deduction of 12% from Nikhil salary to his EPF account. And at same time, his organization also contributing to his EPF account of same, which is 12% amount of Nikhil salary. And additionally, his organization is contributing 0.5% to their employee EDLI, 0.65% to EPF administrative charges and 0.01% for EDLI handling fee. All these deductions are as per employee monthly basic salary. Here, in this example, Nikhil basic salary is 20000 INR, so all deductions are as per this amount. Let’s see mathematical deductions:
Nikhil basic monthly salary is 20000 INR.
Nikhil, employee contributing 12% of salary to his EPF account, which is 2400 INR. It’s indicating, there will a deduction of 2400 INR every month from employee salary.
employer also contributing 3.67% of employee (Nikhil) salary which is, 734.00 INR to employees EPF account every month until that employee continues his services to organization. And,
Here, employer contributing remaining of 8.33% of their employee salary, which is 1666 INR to employee’s pension scheme.
As per Employment provident fund Act, finance ministry should offer some interest to employee’s provident fund which was in their EPF account. From 1952, EPF interest rate was 3% and now, finance ministry offering interest on EPF amount is 8.55%. So now, all employees PF amount is increased by an interest of 8.55% per month. government offering 8.55% interest on their EPF amount monthly.
In above we have taken one example, so as per it:
Employee 12% PF deduction is – 2400 INR
Employer 3.67% PF contribution to their employee EPF account is – 734.00 INR
Combination amount of employee provident fund amount is 3134 INR every month. employee EPF account is credited every month by amount of 3134 INR.
For 1 year: 3134*12 = 37,608 INR.
With adding of 8.55% interest rate to this amount, then it will be 40,823 INR.
This is for one-year EPF amount of an employee. If employee continues his services from his age of 25 to 60 years in same organization, and if government also offering same interest rate on PF which is 8.55%, then total amount will be, 14,28,821 INR ( fourteen lacks twenty-eight thousand eight twenty-one rupees).
Remaining employers 8.33% of amount, employee will get in form of pension as a symbol of token his services to that organization.
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When i check for epf amount deduction in my account it is happening but i didn't know that in which basis they will deduct my pf balance
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How to know the my pf account balance is deducted from my account and what is the percentage of that waiting for your response
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I have a pf account more than 5 years . I want to withdraw the Partial amount of pf amount due to my wife illness ? is it possible r not what is the Partial withdrawl proces ? Kindly explain
After deducting pf account balance from my account is it payable by epfo again at the time of withdraw pf balance can you confirm
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hello sir ....., My name is Shreyas from Bengaluru , my salary package is 5 laks per year . In which bases provident found amount is deducted from my salary please explain ?
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I'm Shilpa from Delhi . I'm in new job , my salary package is 3.7 laks per annum how to calculate my pf balence for monthly , can you please kindly suggest .
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Sir i have a doubt the account epf is introduced is employees future use and as savings account like but what is this deduction of money how can we get transactions details of pf account
I'm recently joined in a corporate company can you clarify my doubght in which percent of pf amount deducted monthly in my salary ? Please guide me .
Is there is any app available for knowing that the pf deduction details like umang app can you give me the link
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Sir I'm getting basic salary of 15300 and how much epf deduction needed in my account and tell me please
I shifted to new company . I had worked the 2 years to the old organization and
they provide the 3.4 laks per annum can plz calculate How much amount will I get on EPF withdrawal ?
I'm recently activated the pf account . Can you please tel me How can i get information about my all pf deduction amount please kindly provide the information .
can you please explain what is the Employees’ Provident Fund Scheme ? Kindly provide the information , please give reply as soon as possible I'm waiting
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Hello sir how the epf amount deducted is happen in my account how to know the details can you use some example here
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Hello how can I know that the deduction for every month will be happen my account and what is the percentage of that how to see it in my account
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hello sir ..., Good morning , I'm servicing a company more than 4 years if I with drawl the pf balence how much amount I will get in please clarify sir . Please reply as soon as possible .
How the epfo organization decided the deductable amount from my pf account is it based on salary or based on age of account that we have
im joined a new corporate company . I activated the pf account , can you please explain What is the formula for calculating the monthly pension amount ? Kindly reply
im from rajastan .pleade tel me if I withdrawl the Partial provident found amount in future interest rate cotinues or not kindly explain sir . Quickly give a reply
Sir i have basic salary of 43200 and how much amount will be deducted from my epf account and how can i know the every month deductable amount can you help me
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this is Geeta Patel i have a pf account more than 2 years please guide me how to calculate the pf amount and also I didn't understand the pf interest rate ? Please kindly provide the information
As per your content there are 2 epfs deduction happened one is employee and another one is employer is Intrest calculate on both or one
How can i get full info about my pf account
It i changed the company the deduction may reduce or increase can you explain
How can i get information about my all pf deduction amount in pdf format
How the employer can deduct amount from my salary
How can i know that the Intrest rate is applicable in my pf amount
How to know that my epf is calculate with the interest amount is there any app or options available to check
I'm having pf account with more than 6 years how much Intrest can i avail in epf scheme
Padma from Hyderabad i want to know that if i withdraw some amount from my pf account and the remaining amount is avail Intrest or not
Hi sir my salary is 25k how can pf deduction is happening in which basis they deducted the pf amount
Here i hear few words like edls what is the meaning and how it role in pf account
I can't understand the interest rates can you explain once again clearly
Recently i change company and here i got new pf account and in this account how can know that employer contribution is there and how much
How to calculate pf amount of an employee working about 3 years
The remaining amount in epf 8.33 percentage when can i get
If the package of employee is 3.5 lakhs per annum how to calculate pf amount
Hello sir I'm joined in a company after 2016 February and how much pf deduction of my salary will be deducted. Thanks
As per new scheme how much the employer can contribute in pf amount I'm joined after 2016 November
Epf new scheme is 12% contribution by employer who is joined after 2016 April but unfortunately I joined in 2017 February am i cover under this scheme or not
I'm withdrawal my pf in the last year due to marriage is there any draw back in future of pf amount
How can i apply for pf amount withdraw in the emergency situation
If i withdraw some amount of pf amount how can they calculate the interest
Is Intrest rate depends on salary package
What is epf administration charges and edls charges in epf
How epf India calculate the interest on pf per month