Finance Salary & Tax

How is PF (Provident Fund) deduction calculated from basic salary?

QUICK ANSWER

The statutory Employee Provident Fund (EPF) contribution is 12% of the employee's Basic Salary plus Dearness Allowance (DA).

Detailed Explanation

For most organized sector employees in India, 12% of Basic + DA is deducted as the employee's EPF contribution. The employer matches this 12% contribution, out of which 8.33% goes to the Employees' Pension Scheme (EPS) (subject to a cap of ₹1,250/month) and the remaining 3.67% goes to the EPF account.
Data Attribution & Rights
Source: Employees' Provident Fund Organisation (EPFO) (Open Data License)

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