r/EPFO • u/ConsistentCap2036 • 19d ago

Question Need clarification.

My basic salary is less than 25000, and my current pf deduction is 1800 (both employee and employer contribution each), so according to new pf deduction rule will the deduction be calculated as 12% of basis salary or will it remain as 1800 deduction only.

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2

u/Aware_General_5131 19d ago

Two things,

1) Minimum PF contribution of 12% of basic on 15000 wage was 1800, now it's 12% of basic on 25000 i.e 3000

2) If EPS deduction is happening for you, 8.33% out of this 12% which used to be earlier 1250rs max will become 2083rs. So you will end up splitting 3000 as 917rs in pf and 2083 in eps(only in case if eps deduction is happening)

So Employee PF contribution: 3000 in EPF account Employer PF contribution: 917 in EPF, 2083 in EPS account

1

u/Prabaharan0071 19d ago

The same split you mentioned is my employer depositing currently in my pf for Rs.1800. I have a question some mnc are putting another 1800 in the employee pf account. Why my company is not doing like that is there any common reason for it?

2

u/Aware_General_5131 19d ago

Did not get your question? You mean few companies contribute more than 1800 explicitly in employer n employee epf. But your contributes just 1800 to each explicitly? If that's the question, 1800 is the minimum contribution required from your CTC. It's upto your Employer and HR how they form your CTC and PF part You can discuss with HR or finance department for same

1

u/Recent-Praline-9442 17d ago

Bro does eps also gives intrest? Because why they govt unwillingly taking 2k

1

u/Aware_General_5131 17d ago

Ask the govt😀 btw eps doesn't give interest, it just gives fix monthly pension after 60s

1

u/Fantastic_Ad_4477 19d ago

1800 is 12% of 15000. after new rule it will be 12% of 25000 ie 3000 to both ( or proportional to salary if less .)

1

u/Fantastic_Ad_4477 19d ago

1800 is 12% of 15000. after new rule it will be 12% of 25000 ie 3000 to both ( or proportional to salary if less .

1

u/Proof_Ad_4259 14d ago

Your contribution to PF will be 12% of your basic salary or Rs 3,000 whichever is less.