PF / ESIC rate of deduction for both Employee & Employer contribution

PF / ESIC rate of deduction for both Employee & Employer contribution PF / ESIC rate chart
Aug

302012

The Provident Fund (PF) contribution is 12% of PF Wages from both employee and employer. For the calculation, the maximum limit of Basic is Rs 6500/-. It means even if the employees PF Wages is above Rs 6500/-, the employer is liable to contribute only on Rs 6500/-, that is Rs 780/-. However if an employee so desires he may voluntarily contribute more than 12%. Apart from it an employer also has to pay some administration charges. The various accounts of PF Challan are as mentioned below. Employee 12 A/c A/c A/c A/c A/c No 1: PF contribution Account No 2: PF Admin account No 10: EPS account No 21: EDLIS account No 22: EDLIS admin account Employer 3.67 1.10 8.33 0.50 0.01 Total PF admin charge = Employer has to pay 1.1 % of pf wages EDLIS: Employer has to pay 0.5% of pf wages EDLIS admin charge:Employer has to pay 0.01% of pf wages. Hence, total additional percentage employer has to pay is rupees : 1.61% of basic so employer has actually to pay 13.61 % of Basic and employee has to pay only 12% of pf wages. Employees complete 12% goes to PF account while employer contributions 8.33% goes to Pension Fund and 3.67% goes to PF Fund. 12 13.61

Employee State Insurance Corporation(ESIC) is deducted on gross salary which is 1.75% from the employee contribution & 4.75% from the employer contribution.