Employee Provident fund Contribution

Let us understand how Employee pension scheme and Employee Provident fund contribution works and how interest is calculated. why your EE amount is much greater than ER amount also in PF balance Inquiry?

1) 12 % of basic salary goes into Employee Provident fund as Employee contribution(EE).
2) 12% of basis salary goes into from employer and this amount is divided in two portion.

  • Employees Pension Scheme ( EPS ) contribution of Rs. 541 /- ( @8.33% of Basic salary upto a maximum of Basic salary Rs.6,500/- PM) is deducted from Employers’ Contribution.
  • Remaining amount goes to Employee Provident fund as employer contribution(ER).
Employee Provident fund Contribution = Employer's Pension scheme contribution + Employer's Provident fund contribution
There will be opening balance each year and contribution as shown in above example.You will be get interest on opening balance and monthly contribution.
So your total contribution will be opening balance + monthly contribution + interest earned on these both contribution. 

You will get total Employee and employer contribution at the retirement or termination of job.

Employee pension scheme contribution gives  pension at retirement or pension to your nominee in case of your death.

You may like to read also:
  1.   EPF Balance - Employees' Provident Fund Balance online
  2.   PF interest rate increased to 9.5% for FY 2010-2011