Employees EPF Deductions Calculation (UPDATED) | Employers PF Deductions

By | February 22, 2019

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 This EPF amount should not be withdrawn up to employee age near 60 to 62 or up to their retirement time.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.

31 thoughts on “Employees EPF Deductions Calculation (UPDATED) | Employers PF Deductions

  1. Dong son

    can u plz tel me my salary package is 5kaks per annum .in which bases they are providing the epf interest rates ?

    Reply
  2. Neetha

    I’m joined in a company after 2017 March and how much pf deduction of my salary and what is epf interest percentage can u plz explain complete details.

    Reply
  3. Akshara

    I’m shifted to another company now I want to epf transfer from old account to new ac what is the process plz tel me?

    Reply
  4. Yoda

    can u plz post where can I link adaar number with pf account what is the process for that ?

    Reply
  5. Sona

    I lost the mobile number which I was given at the time of pf account opening can u plz tel me , now I want to change the new number in pf account is it possible or not plz tel me ? Im waiting for Ur answer

    Reply
  6. Maruthi

    where can I get complete information about pf deduction amount details plz post a official website link for that

    Reply
  7. Komali

    can u plz tel me who decide the epf interest rate and which bases they can calculated the interest rate annually ?

    Reply
  8. Nahim

    can u plz tel me what is the maximum retirement age to claim the pf amount ?

    Reply
  9. Pappy

    im having pf account more than 3 years now I want to calculate the total pf amount can u plz explain the process ?

    Reply
  10. Vidya

    can u plz tel me which percent of pf amount deducted monthly in my salary ?

    Reply
  11. Neha

    I worked in last company for 2 years 6 months nd quit the job in november 18 .now i want to know how much money I received from pf
    plz help me to calculate this .

    Reply
  12. Maduri

    I’m working in corporate company since 2016 to still I’m working how to calculate my pf amount and how much amount I will get if I apply for withdrawl ?Plz tel me

    Reply
  13. Parameswar

    I worked for a private company for 2.6years .now I resigned the job for some issues my salary is 20000 mnthly now tel me how much amount deducted my salary with pf account .where can I check my pf balence ?

    Reply
  14. Rajita

    I’m joined in Pvt company since 2017 to still im working the same one can u plz tel me how to calculate pf amount and what is the employee contribution for that plz tel me I’m waiting .

    Reply
  15. Sai prem

    hello sir .., I have completed 3.4 years of service in first company and i’m going to join new company soon . so I want to know the pf transfer details can u plz explain the process ?

    Reply
  16. Gunashekar

    can u plz post how to login the UAN portal in online and also how can I check the pf balence plz guide me.

    Reply
  17. Srilakshmi

    I have worked in a Pvt company for 1year 20 days.I left the job on 08.10.2018 now im planning to withdraw my PF amount .but I don’t know the process can u plz explain the complete process on step-by-step?

    Reply
  18. Gouri

    I have recently got the job.my salary package is 3.2laks per annum .I recently applied the pf but I can’t understand the pf rate and percentage can u plz explain once ?

    Reply
  19. Sitara

    can u plz explain what is the eps scheme and what is the uses for that?

    Reply
  20. Sri prakruti

    I’m prakruthi from Hyderabad I have the 5yrs of exp in a Pvt company till I’m working I would like to know how to calculate the 5yrs pf amount can u plz help me?

    Reply
  21. Rishita

    I left my job I have the pf number but they did not provide the UAN number I want to check pf amount can u plz suggest what should I do any process is there plz help me

    Reply
  22. Seela

    I recently joined the Infotech company so I would like to know where can I get complete information about pf interest rate?

    Reply
  23. Madhumita

    can u plz tel me I quit the job and I know the UAN number where can I find the epf balence instantly in online .

    Reply
  24. Myna

    my name is myna im working in a private company since 2yrs ago can u plz guide me how can I calculate my pf amount .

    Reply
  25. Sirisha

    I’m unable to open pf web portal it’s getting some error can u plz suggest a good website link ?

    Reply
  26. Arup Kr Das

    Can you tell me how I transfer my old pf account to new pf account

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *