{"id":7888,"date":"2025-07-16T06:39:48","date_gmt":"2025-07-16T06:39:48","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&p=7888"},"modified":"2025-07-16T06:39:50","modified_gmt":"2025-07-16T06:39:50","slug":"pf-contribution-breakup","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/pf-contribution-breakup\/","title":{"rendered":"PF Contribution Breakup"},"content":{"rendered":"

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

Who Contributes to PF?<\/h2>\n\n\n\n
    \n
  1. Employee<\/strong> – 12% of your basic salary + DA<\/strong> (Dearness Allowance<\/a>)<\/li>\n\n\n\n
  2. Employer<\/strong> – 12% of your basic salary + DA<\/strong> (but split into different parts)<\/li>\n<\/ol>\n\n\n\n

    PF Contribution Breakdown Table<\/h2>\n\n\n\n
    Contributor<\/th>Percentage<\/th>Amount Goes To<\/th><\/tr><\/thead>
    Employee<\/strong><\/td>12%<\/td>Entirely to EPF<\/strong><\/td><\/tr>
    Employer<\/strong><\/td>12%<\/td>– 3.67% to EPF<\/strong><\/td><\/tr><\/tbody><\/table>
    PF Contribution Breakdown Table<\/figcaption><\/figure>\n\n\n\n
                              - 8.33% to EPS (Pension Scheme)<\/strong>\n                          - 0.50% to EDLI (Insurance)<\/strong>\n                          - 0.85% to EPF Admin Charges  <\/strong>\n                          - 0.01% to EDLI Admin Charges<\/strong><\/code><\/pre>\n\n\n\n
    Example: If Basic Salary = ₹20,000<\/h2>\n\n\n\n
    Contribution Head<\/th>Amount (Monthly)<\/th><\/tr><\/thead>
    Employee (12%) to EPF<\/td>₹2,400<\/td><\/tr>
    Employer:<\/td><\/td><\/tr>
    → 3.67% to EPF<\/td>₹734<\/td><\/tr>
    → 8.33% to EPS (pension)<\/td>₹1,666<\/td><\/tr>
    → 0.5% to EDLI<\/td>₹100<\/td><\/tr>
    → 0.85% to Admin Charges<\/td>₹170<\/td><\/tr>
    → 0.01% to EDLI Charges<\/td>₹2<\/td><\/tr>
    Total Employer Cost<\/strong><\/td>₹3,072<\/td><\/tr><\/tbody><\/table>
    Example: If Basic Salary = ₹20,000<\/figcaption><\/figure>\n\n\n\n
    What Happens to the Money?<\/h2>\n\n\n\n
      \n
    • EPF<\/strong> (Employee + Employer share) earns interest (~8.15%)<\/strong> annually<\/li>\n\n\n\n
    • EPS<\/strong> builds your pension for post-retirement (no interest, but gives pension)<\/li>\n\n\n\n
    • EDLI<\/strong> is an insurance scheme that offers life cover up to ₹7 lakh<\/strong><\/li>\n\n\n\n
    • Admin charges<\/strong> go to EPFO for maintenance<\/li>\n<\/ul>\n\n\n\n
      Benefits of Understanding This Breakup<\/h2>\n\n\n\n
        \n
      • Helps you track your PF passbook<\/strong><\/li>\n\n\n\n
      • Know how much is growing in EPF vs EPS<\/li>\n\n\n\n
      • Plan for retirement and withdrawal smartly<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"
        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? PF Contribution Breakdown Table Contributor Percentage Amount Goes To Employee 12% Entirely to EPF Employer 12% – 3.67% to EPF PF Contribution Breakdown Table Example: If […]<\/p>\n","protected":false},"author":9,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-7888","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7888","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7888\/revisions"}],"predecessor-version":[{"id":7889,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7888\/revisions\/7889"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}