eTax Guru



EPF is applicable if there are more than 20 employees.  Salary more than Rs. 15000/- is not applicable for EPF.


EPFO Rate:

12% of Basic + D.A.+ food concession+ retaining allowance
12% of Basic + D.A.+ food concession+ retaining allowance (of which 8.33% or Max Rs. 1250/- for pension fund)
0.5% of Basic + D.A.
Administrative  Charges
0.5% of Basic + D.A.
  • Minimum administrative charges of Rs. 500 is payable. If the establishment has no contributory member in the month, the minimum administrative charge will be Rs. 75/-
  • The employee can pay at a higher rate and in such case employer is not under any obligation to pay at such higher rate
  • For an International Worker, wage ceiling of 15000/- is not applicable
  • Pension contribution not to be paid: When an employee crosses 58 years of age and is in service (EPS membership ceases on completion of 58 years). When an EPS pensioner is drawing Reduced Pension and re-joins as an employee. Both cases, the Pension Contribution @8.33% is to be added to the Employer Share of PF.
  • In all other cases Pension Contribution is payable. A member joining after 50 years age, if not a pensioner does not have choice of not getting the Pension Contribution on grounds that he will not complete 10 years of eligible service. The social security cover is applicable till he/she is a member
10% PF rate is applicable on for:
  • Any establishment in which less than 20 employees are employed.  
  • Any sick industrial company and which has been declared as such by the Board for Industrial and Financial  Reconstruction
  • Any establishment which has at the end of any financial year, accumulated losses equal to or exceeding  its entire net worth
  • Any establishment in following industries:- (a) Jute (b) Beedi (c) Brick (d) Coir and (e) Guar gum Factories

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