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PF and ESIC Contribution Rates Explained

The document outlines contribution rates for Provident Fund (PF) and Employee State Insurance Corporation (ESIC) in India. For PF, both employee and employer contribute 12% of wages up to a 6500 rupee limit, with the employer contributing an additional 1.61% for administrative fees. For ESIC, employees contribute 1.75% of gross salary and employers contribute 4.75%.

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2K views1 page

PF and ESIC Contribution Rates Explained

The document outlines contribution rates for Provident Fund (PF) and Employee State Insurance Corporation (ESIC) in India. For PF, both employee and employer contribute 12% of wages up to a 6500 rupee limit, with the employer contributing an additional 1.61% for administrative fees. For ESIC, employees contribute 1.75% of gross salary and employers contribute 4.75%.

Uploaded by

kdnagi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

PF / ESIC rate of deduction for both

Employee & Employer contribution


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 employee’s 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 Employer
A/c No 1: PF contribution Account 12 3.67
A/c No 2: PF Admin account 1.10
A/c No 10: EPS account 8.33
A/c No 21: EDLIS account 0.50
A/c No 22: EDLIS admin account 0.01
Total 12 13.61

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.

Employee State Insurance Corporation(ESIC) is deducted on gross salary which is 1.75%


from the employee contribution & 4.75% from the employer contribution.

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