EPF Contribution by Employer

To address your questions regarding the 12% employer contribution for an employee with a UAN number, already an EPF member, who quits their job and joins a new company with a salary of ₹20,000 per month. Mandatory Contribution The mandatory contribution is as follows: - *Scenario 2*: The employer must contribute 12% on the ₹15,000 salary limit, as per the EPFO notification. This breaks down into 8.33% on the ₹15,000 salary limit in EPS and 3.67% on ₹15,000 in EPF.¹ Discretionary Contribution The discretionary contribution is: - *Scenario 1*: The employer may contribute 12% on the actual salary of ₹20,000 (8.33% on ₹20,000 in EPS and 3.67% on ₹20,000 in EPF). However, this is not mandatory. - *Scenario 3*: The employer may contribute 8.33% on the ₹15,000 salary limit in EPS and the remaining amount of ₹1,150 in EPF. Again, this is not mandatory. Other Considerations It's essential to note that: - Employees earning more than ₹15,000 per month can opt to contribute more than the mandatory 12%. - The employer's contribution is restricted to ₹15,000 per month for EPS. Please consult with a tax professional or chartered accountant to ensure compliance with the latest regulations and specific circumstances.