Provident Fund (PF) Admin Changes 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

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