## Provident Fund (PF) Contribution & Admin Charges Calculation Tool

**Employer's share of Contribution towards PF is segregated as : **

3.67% into Employees’ Provident Fund (EPF)

8.33% into Employees’ Pension Scheme (EPS)

0.5% into Employees’ Deposit Linked Insurance Scheme (EDLIS)

0.5% for EPF Administrative Charges (wef 01/06/2018)

EDLIS Administrative Charges- Not Applicable (wef 01/04/2017)

Account No. | Particulars | Employee | Employer |
---|---|---|---|

1 | EPF Contribution | 12.00% | 3.67% |

10 | EPS Contribution | - | 8.33% |

21 | EDLIS Contribution | - | 0.50% |

2 | EPF Administrative Charges | - | 0.50% |

22 | EDLIS Administrative Charges | - | - |

Total | 12.00% | 13.00% |

**Update 01-06-2018 : **

EPF Admin charges reduced to 0.50 %

Subject to a minimum of Rs.75 per month for every non-functional establishment having no contributory member and

Rs 500 per - month - per - establishment for others.

EDLI Admin charges remains 0.

PF Admin Charges Reduced to 0.5% w.e.f. 1 June 2018: MoL&E/ EPFO Notification dt. 21 May 2018

**10% rate of contribution (instead of 12%) 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 (BIFR).

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.

Particulars | Employee | Employer |
---|---|---|

EPF Contribution | 10.00% | 1.67% |

EPS Contribution | - | 8.33% |

EDLIS Contribution | - | 0.50% |

EPF Administrative Charges | - | 0.50% |

**Points to be noted for contribution calculation.**

The Employee contribution towards EPF, EPS & EDLI should be rounded up to the next value.

EPF Administration charges, also to be rounded up to the next value.

Employer to remit @ 0.5% of contributions (subject a minimum of Rs.500) towards EPF Administration charges per month.

In the case of Non-functioning organisations (if the prevailing month has no contributory members) the minimum Administrative charges to be paid is Rs.75.

**Calculation of EPF,EPS,EDLI,Admin charges under various scenarios**

Lets look at calculation of EPF, EPS &EDLI under various combinations where the Employer &Employee may / may not choose to contribute equally into the fund or where the salary drawn is over / under the minimum prescribed limits.

**Contribution calculation of Employees where salary is less than Rs. 15,000**

An employee is paid Rs.10,000 per month.

He is covered under EPF scheme and the salary breakup is as follows-

Basic 7,000

DA 1,000

HRA 2,000

Total 10,000

The contribution is calculated as follows:

Basic pay & DA is considered for the calculation and HRA is not.

Hence PF Gross Salary is 7000 + 1000 = 8000.

The contribution is calculated as follows.

Particulars | Employee | Employer |
---|---|---|

EPF Contribution | 8000*12%=960 | 8000*3.67%=293.6 rounded to 294 |

EPS Contribution | - | 8000*8.33%=666.4 rounded to 666 |

EDLIS Contribution | - | 8000*0.50%=40 |

EPF Administrative Charges | - | 8000*0.50%=40 |

**Rounding off:**

The contribution of EPF ,EPS & EDLI is rounded individually. (i.e each employees' contribution is rounded)

However, the EPF Admin charges is rounded on Total contribution of all employees.

EDLI Admin Charges have been waived off.

**Contribution calculation of Employees where salary is more than Rs. 15,000**

The law does not restrict willing contributors to deposit into the fund where the salary is above 15000.

An employee is paid Rs. 20,000 per month.

The salary breakup is as follows-

Basic 10,000

DA 8,000

HRA 2,000

Conveyance Allowance 1000

Total = 21,000

EPF Gross = 18000

Considering this, we can calculate the EPF contribution in the following 3 ways.

**Option 1**

Both employee &employer contribute on Total Basic of 18000.

Particulars | Employee | Employer |
---|---|---|

EPF Contribution | 18000*12%=2160 |
18000 x 12%
= 2160 2160 - 1250(of EPS) =910 |

EPS Contribution | - | 15000 x 8.33% = 1250 |

EDLIS Contribution | - | 15000 x 0.5% = 75 |

EPF Administrative Charges | - | 18000 x 0.5% = 90 |

EPS share is always fixed at 15000 x 8.33 % = 1249.5 rounded up to 1250.

Then, EPF is calculated as: 18000 x 12 % = 2160 – (EPS 1250) = 910

** Note:** EPS & EDLI cannot be calculated on amount exceeding the ceiling limit.

**
Option 2
**

Both employee & employer contribute equivalent to the ceiling limit of 15000.

Particulars | Employee | Employer |
---|---|---|

EPF Contribution | 15000 x 12% = 1800 | 15000 x 3.67% = 551 |

EPS Contribution | - | 15000 x 8.33% = 1250 |

EDLIS Contribution | - | 15000 x 0.5% = 75 |

EPF Administrative Charges | - | 15000 x 0.5% = 75 |

**
Option 3
**

In this, employer share is calculated on ceiling limit of 15000 whereas employee share is calculated on total of 18000.

Particulars | Employee | Employer |
---|---|---|

EPF Contribution | 18000 x 12% = 2160 | 15000 x 3.67% = 551 |

EPS Contribution | - | 15000 x 8.33% = 1250 |

EDLIS Contribution | - | 15000 x 0.5% = 75 |

EPF Administrative Charges | - | 15000 x 0.5% = 75 |

### PF Admin Charges Calculation

### Results

** Note: **If Organisation is 'Exempted', EPF Admin charges will not apply.