employer is not bound to do a matching contribution.The employer is liable to pay contribution only on 6500/15000 whatever is the basic salary. This is called voluntary contribution and a Joint Declaration Form needs to be filled up where the employer...
Employer’s contribution– The employer contributes a total of 12% of the employees’ dearness allowance and basic salary to the following- 8.33% to the Employees’ Pension Scheme (EPS) 3.67% to the Employees’ Provident Fund (EPF) 0.50% to the Employees’ Deposit Linked Insurance (EDLI) Ap...
EPS and EDLI remains the same for exempt and unexempt as shown in the table below.Our articleBasics of Employee Provident Fund: EPF, EPS, EDLISexplains it in detail.
Employer Contribution is divided as: 3.67% into EPF 8.33% into EPS 0.5% into EDLIS 0.85% for EPF Administrative Charges 0.01% for EDLIS Administrative Charges Growth Rate in EPF This is also equal to your salary growth rate. In other words, enter the percent at which you expect your sal...
The contribution Employer for EPF is the 12% of (Basic pay + DA) Take note that the employer's contribution of 12% is split into two parts: 8.33 % goes to the employee pension plan (EPS) and 3.67 % goes to the provident fund. ...
Note:-The EDLI cap is either 0.5% or Rs.75. You noticed that employee contribution is directly going to EPF. However, in the case of employer contribution, 8.33% will be towards EPS, and the remaining 12% minus EPS will go towards EPF. Along with this, the employer will contribute tow...
There is no cap on the salary on which contributions are payable by the employer as well as employee. There is no cap on the salary up to which the employer’s share of contribution has to be diverted to EPS, 1995 and the same is payable on total salary of the employee. ...