PF Contribution Breakup

When you’re a salaried employee, both you and your employer contribute to your EPF (Employees’ Provident Fund) account every month. Let’s break it down simply:

Who Contributes to PF?

1. Employee – 12% of your basic salary + DA (Dearness Allowance)
2. Employer – 12% of your basic salary + DA (but split into different parts)

PF Contribution Breakdown Table

Contributor	Percentage	Amount Goes To
Employee	12%	Entirely to EPF
Employer	12%	– 3.67% to EPF

                          - 8.33% to EPS (Pension Scheme)
                          - 0.50% to EDLI (Insurance)
                          - 0.85% to EPF Admin Charges  
                          - 0.01% to EDLI Admin Charges

Example: If Basic Salary = ₹20,000

Contribution Head	Amount (Monthly)
Employee (12%) to EPF	₹2,400
Employer:
→ 3.67% to EPF	₹734
→ 8.33% to EPS (pension)	₹1,666
→ 0.5% to EDLI	₹100
→ 0.85% to Admin Charges	₹170
→ 0.01% to EDLI Charges	₹2
Total Employer Cost	₹3,072

What Happens to the Money?

• EPF (Employee + Employer share) earns interest (~8.15%) annually
• EPS builds your pension for post-retirement (no interest, but gives pension)
• EDLI is an insurance scheme that offers life cover up to ₹7 lakh
• Admin charges go to EPFO for maintenance

Benefits of Understanding This Breakup

• Helps you track your PF passbook
• Know how much is growing in EPF vs EPS
• Plan for retirement and withdrawal smartly