PF Contribution and Its Different Account

Dear all,

Now a day a person working in organization want a security for his or her feature when he or she gets retired. For this purpose the Indian government has started the scheme which is known as PF              ( Provident Fund)

Every month some fix amount has been deducted through the salary of the employee and also employer contribute into it.

Now we will see how the PF is Bifurcated , how much amount is deducted from employees salary and how employer contributed into the pf account.

Before the we will see criteria for PF deduction i.e who are eligible for PF.

1. PF is deducted on your Basic salary every month 

2. your Basic should be less than 15000

3. If the basic is greater than 15000 It will deducted on Gross. From that gross he HR will be subtracted and what ever will be remain on that the PF amount is considered and deducted.

PF Contribution 

Total Deduction of PF is 24 %

1. 12 % from Employer side 

2. 12 % from employee side 

Employer contribution is bifurcated into 4 account 

1. A/C No 1 - PF account - 3.67%

2. A/C No 2 - Admin account - 0.50%

3. A/C No 10 - EPS account - 8.33%

4. A/C No 21 - EDLI account - 0.50%

Employee Contribution is completely 12 % it is not bifurcated into different accounts.

IF any employee want to contribute more than 12% in PF account he/she can do that the ceiling for it is up-to 20%. Which is known as voluntary contribution.

This is all about contribution of PF and its bifurcated to different accounts.

in next article we will see about different problems related to PF and will suggest you different form related to it. 

Till then thank you..!! Keep reading,,,,,!!!