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.