EPF employee contribution amount limit

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This discussion clarifies the Employee Provident Fund (EPF) contribution for an employee earning ₹50,000 in Basic + DA. While initially thought to be 12% of the full amount, it's confirmed that the statutory EPF contribution is capped based on a wage ceiling of ₹15,000. Both employee and employer contribute 12% up to this limit, unless a higher voluntary contribution is agreed upon.

Manish

Manish (Querist)
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06 August 2021 Hi experts,

What is the amount of EPF deduction from salary if someone's earning 50,000 of Basic + DA?

My doubt is: what is the minimum or default liability as per the EPF scheme of deduction and employer's share?

Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 August 2021 12% 50,000 to be deducted from employee and equal amount payable by employer.

Message likes : 1 times

Manish

Manish (Querist)
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06 August 2021 I also have the same view. But today, I discussed this point with someone dealing in EPF. And he contended that the contribution is limited to wages of only Rs. 15,000 unless a higher contribution rate is opted by the employee and employer. I explained that this limit of 15,000 is only for the employer's contribution, but he disagreed.

Thanks for your reply. Now my doubt is cleared.
Sir, can you please refer to any section or something to keep it in the file?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 August 2021 See the link.

https://www.google.com/amp/s/www.news18.com/amp/news/business/pf-rules-know-how-to-calculate-employees-provident-fund-balance-and-interest-3739205.html

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