Employees’ Provident Fund Scheme 1952
RATE OF CONTRIBUTION
12% of Pay to Employees Provident Fund.
“Pay Includes Basic Wage, Dearness Allowance, Retaining Allowance”
Basic Wage :- The expression means all emoluments which are earned by an employee while on duty or leave or on holidays with wages, in accordance with the terms of the contract of employment and which are paid or payable in cash and are payable for the time being to each of the employees. It does not include any cash on food concessions, house rent allowance, overtime allowance, bonus, any commission or gifts.
Dearness Allowance: It is the Cost of Living allowance paid to employees and shall include cash value of any food concession allowed to the employee.
Retaining Allowance: It means any allowance payable to an employee, in respect of any period during which the establishment is not working, for retaining the service of the employee.
Employer’s contribution shall be equal to the contribution payable by the employee. The Employer will be responsible for the deduction and deposit of the same into the provident fund account.
However, Out of the 12% contributed by the employer, 8.33% goes to the Employees Pension Fund (EPS) and remainder 3.67% is contributed to the Employee Provident Fund.
The Provident Fund Body declares the rate of interest every financial year that is to be paid on the Deposits on the basis of the financial corpus at their disposal. The rate of interest for Financial Year 2015-16 has been revised to 8.70% from 8.75%.
The rate of interest for Financial Year 2017-18 has been fixed at 8.55% by the EPFO.
Members of the fund may withdraw entirely from the fund on account of:-