EPFO Employer Contribution Unveiled: 7 Must-Know Facts That Could Change Your PF Game

All companies with 20 or more employees must register for the Employees’ Provident Fund (EPF) scheme as mandated by the EPFO. This helps workers build retirement savings.

Both the employee and employer contribute 12 percent each of the employee’s basic salary to EPF every month.

The entire 12 percent from the employee’s basic salary goes into their own EPF account. This full amount earns annual interest and grows over time.

Although the employer also contributes 12 percent, it is not contributed entirely to the employee’s EPF account. The employer’s contribution gets split into different EPF-linked schemes.

Of the employer’s 12 percent:

8.33 percent goes to the Employees’ Pension Scheme (EPS)

3.67 percent goes to the Employees’ Provident Fund (EPF)

For example, if you contribute Rs 2,000 monthly to your EPF, the employer contributes Rs 2,000 as well, but only Rs 611 (3.67 percent) goes to your EPF account. The rest goes to the pension scheme (EPS).

You can view detailed contributions made by both you and your employer in your EPFO member passbook. This shows the split and helps track your retirement benefits.