What is employee share and employer share in PF?
Under the Employee Provident Fund (EPF) scheme, employees and employers both contribute equally. According to regulations, employees and employer contribute 12\% of the basic monthly salary to the EPF. Women can choose to contribute only 8\% of the basic monthly salary for the first three years.
How is employer share calculated in PF?
You and your employer need to transfer 10\% or 12\% of your basic salary to contribute towards EPF. However, if you are a woman, you only need to contribute 8\% of your basic salary for the first three years. During this period, your employer’s EPF contribution will remain 12\%.
How is PF percentage calculated?
The employee contributes 12 percent of his or her basic salary along with the Dearness Allowance every month to the EPF account. For example: If the basic salary is Rs. 15,000 per month, the employee contribution shall be 12 \% of 15000, which comes to Rs 1800/-. This amount is the employee contribution.
How PF amount is calculated?
To calculate your provident fund contribution, add both employer and employee contributions. The employer contributes 12\% towards the PF balance, whereas the employee contributes 3.67\% towards the PF balance. The employer’s contribution of 12\% towards the PF balance depends on the employee’s basic pay.
How is PF interest calculated in Excel?
Here is how it is calculated:
- EPF Account Balance (Start of April 2018) = Rs 0.
- EPF contribution (April 2018) = Rs 7835.
- EPF Account Balance (End of April 2018) = Rs 7835.
- Interest on EPF Balance (April 2018) = Nil (No interest in the first month)
- EPF Account Balance (Start of May 2018) = 7835.
How is PF interest earned calculated?
EPFO members, whose UANs are registered with the retirement body, can get details of their most recent contributions and provident fund balance though an SMS. All you have to do is send the SMS to 7738299899 with the text “EPFOHO UAN ENG”.
How is PF amount calculated for salaried employers?
When the employee’s income is below or equal to Rs.15, 000, then the PF amount of salaried Employers is calculated as follows. Employees monthly basic salary + Dearness Allowance: Rs.15000/- Employee contribution toward EPF will be 12\% × 15000= Rs.1800/-
What is the basic rate of EPF contribution by employer?
Contribution by your employer – Your employer has to contribute an amount equal to 10\% or 12\% of your basic salary towards EPF. – In case you are a new woman employee, the government’s contribution doesn’t change. – This basic rate of EPF is further sub-divided.
What are the employee and employer contributions for PF deduction?
Employee and Employer Contributions for PF Deduction Statutory Compliance. For EFP, both the employee and the employer contribute equal amount, which is 12\% of the salary of the employee. However, the employee contributions may differ. Employees can contribute more than 12\% of their salary voluntarily.
What are the statutory compliance associated with PF contribution?
The statutory compliance associated with PF contribution has some lesser known facts associated with it. The contributions by the employee and employer are divided into two separate funds: – EPF (Employee Provident Fund) and – EPS (Employee Pension Scheme).