In EPF, your employer deducts a percentage of your basic salary,which is usually 12%, and puts it into your EPF account. They also contribute an equal amount on your behalf into the account. So the EPF account receives contributions of your 12% plus their 12% of your basic salary. So...
Let’s say Swayam starts with a basic salary of Rs. 20,000. Every year, on an average, he gets a 5% increment. He started at 25 years and worked till 60 years so his working life is, 35 years. He contributes 12% of his basic salary towards PF which is matched equally by one’s...
Table below gives the rates of contribution of EPF, EPS, EDLI, Admin charges in India. For more details about EPF you can read our articleBasics of Employee Provident Fund: EPF, EPS, EDLISwhich covershow the contributions are calculated based on basic salary and dearness allowance,what are...
As a result, 0.675% of Rs.6268 is Rs.42.30, which is the second-month interest calculated on your EPF. This will continue to rise as monthly contributions are increased throughout the financial year. Here's the snapshot: Basic salary + dearness allowance 20,000 Employees' EPF contributions...
Monthly Basic Salary ₹ ₹500 ₹1.5 L Present Age 18 Years 60 Years Avg. annual increase in salary you expect % 0 15 Your Contribution % 12% 20% Current EPF Balance ₹0 ₹50L Retirement Age 60 Yrs Current EPF Rate of Interest 8.1% Amount Invested Vs ...
Basic Monthly Salary ₹ Current Age Retirement Age Your contribution to EPF % Employer's contribution to EPF % Current Rate of Interest % Total Maturity Amount ₹ 52,11,482 Avoid tax lossesTalk to a CA Now! What is EPF? The Employee Provident Fund (EPF), is a particular retirement ben...
Suppose that an employee, Mr. X has a monthly salary of Rs. 15,000 (Basic salary + Dearness allowance) Now- Employee’s contribution towards his EPF account will be Rs. 1800 (12% of 15,000) Employer’s contribution towards EPS would be Rs. 1250 (8.33% of 15,000) ...
Your employer contributes 8.33% of Rs. 6,500 Basic salary to the Employee Pension Scheme, and the Central Government contributes 1.16% of the same. The EPS provides you with regular annuity after your retirement. Check your EPF balance Online Yes, it can. Here are a few steps to be ...
In your scenario you have to deduct pf of the rejoined employee on basic salary. i.e., ex: basic 15100, so 15000(cut-off) x 12% =1800(have to be deducted). hope this helps. Kindly let me know if any mistakes. @ eera Sharif...
This 12% contribution is mandatory for all employees earning a basic salary of up to INR 15,000 per month. What are the tax implications of a EPF investment? The contributions made to the Employees' Provident Fund (EPF) in India are eligible for tax benefits under Section 80C of the ...