EPF - Contribution, Type, Deduction, Withdrawal and Benefits :)

1. Prepared By – Manisha Chauhan
(HR & Admin : Assistant Manager)

2. Definition –
EPF stands for
Employee Provident Fund that
is a scheme for providing a
monetary benefit to all salaried
individuals after their
retirement. The process is
monitored by the
Employee Provident
Fund Organization of India. Any
organization that has more
than 20 employees must
register with the EPFO

3. Any organization
which running with
the strength of 20
Employees it is
compulsory for
employees below
Rs. 15,000.00
salary, nowadays
mandatory for all
the employees.

4. Three Type of PF
deductions-
1. Rs. 1800.00 PM
2. 12% of salary
(Salary = Basic + DA)
3. Rs. 1,800.00 as pf
deduction or 12% of
salary.

5. PF – BENEFITS
1. 8% to 9% rate of interest on PF.
2. Return are tax free, No tax +
interest.
3. Government Backing. Hence
Govt. Monitoring.
4. In case of any miss-happening
family can withdraw whole
amount of employee from PF.
5. Universal Access – is can be
continued from 1 to another
employer with the help of UAN
number.

6. CHANGE OF WAGE LIMIT {Sec
2(f) OF EPF SCHEME 1952
Period Wage limit per month
01.11.1952 to 31.05.1957 Rs. 300/-
01.06.1957 to 30.12.1962 Rs. 500/-
31.12.1962 to 10.12.1976 Rs. 1,000/-
11.12.1976 to 31.08.1985 Rs. 1,600/-
01.09.1985 to 31.10.1990 Rs. 2,500/-
01.11.1990 to 30.09.1994 Rs. 3,500/-
01.10.1994 to 31.05.2001 Rs. 5,000/-
01.06.2001 to 31.08.2014 Rs. 6,500/-
01.09.2014 onwards Rs. 15,000/-

7. EMPLOYEE Contribution
Employee contribution
Contribution made by the
employee equals 12% of his/her
Basic Pay plus Dearness Allowance
(DA). When the Basic Pay plus DA is
less than or equal to Rs 15000, the
employee contribution is 12% of
Basic Pay.
FP = 15,000.00 (Basic + DA)
x 12% = Rs. 1,800.00

8. EMPLOYERS Contribution in EPF
#1Employer contribution is 3.67% for Employee
Provident fund & 8.33% on Employee Pension
Scheme of the Basic Pay + DA. Apart from that
employee pays 0.5% on EDLI Employees’ Deposit
Linked Insurance Scheme & 0.01% towards EDLIS
Administrative Charges.
#2 10% PF in case of any co. with less than 20
employee or any sick declared industry
Salary for PF Employer’s EPF
Contr.
Employers EPS
Contr.
Employees’ Deposit Linked
Insurance Scheme
Admin charges
#1 = Salary =Basic + DA
DA DA
= Salary X 3.67% = Salary X 8.33% = Salary X 0.5% = Salary X 1 %
#2 = Salary = Basic + DA = Salary X 1.67% = Salary X 8.33% Salary X 0.5% = Salary X 1 %

9. Form of EPF-
(i) Rs. 1,800.00 per month.
(ii) 12% of Salary. (Basic + DA)
(iii) Rs. 1,800 or 12% of basic salary.
Note : Any organization which runs with
20 or more than 20 employees. It is
compulsory for EPF, below Rs. 15,000
salary. Nowadays it is compulsory for for
all the employees with basic Rs,
15,000.00 or more than that. For EPF
contribution from EMP. and Employer
side deduction where both pays 12% on
basic.
Employer Pays additional 1% extra as
EDLI and Amin charges.

10. PF Contribution In 3 different Scenarios
Scenario - #1 Salary <= 15,000.00 Salary =Rs. 15,000.00 (Bsc+DA)
Employee Contribution Employer Contribution
12% On basic EPF 3.67% On Basic EPS 8.33 % on Basic EDLI 0.5% on Basic Admin 0.5% on Basic
= 12% x 15,000 = 3.67% x 15,000 = 8.33% x 15,000 = 0.5% x 15,000 = 0.5% x 15,000

11. PF Contribution In 3 different Scenarios
Scenario - #2 when salary is >= 15,000.00 where basic pay will be considered only Rs. 15000 no matter if
employee earn Rs. 40,000 as basic pay.
Employee Contribution Employer Contribution
12% On basic EPF 3.67% On Basic EPS 8.33 % on Basic EDLI 0.5% on Basic Admin 0.5% on Basic
= 12% x 15,000 = 3.67% x 15,000 = 8.33% x 15,000 = 0.5% x 15,000 = 0.5% x 15,000

12. PF Contribution In 3 different Scenarios
Scenario - #3 In case of less than 20 employees or sick declared industry by Gott. body
Employee Contribution Employer Contribution = 13% and 11% (EDLI + Admin Charges)
10% On basic EPF 1.67% On Basic EPS 8.33 % on Basic EDLI 0.5% on Basic Admin 0.5% on Basic
= 12% x 15,000 = 1.67% x 15,000 = 8.33% x 15,000 = 0.5% x 15,000 = 0.5% x 15,000

13. -------Withdrawal Process-------
At the ag of 58 – 100% Withdrawal available.
At the Age of 57 – 90% withdrawal available.
In Below condition EPF withdrawal available
1) In case of medical emergency.
2) Home Loan Repayment.
3) Purchase of land and House.
4) House Construction.
5) For Marriage.
100% withdrawal also available in of Employee resignation & unemployed for 2 or more
month.

14. Thank you  …………….. By manisha