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All-in-one HR platform · v2.0
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All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
A statutory retirement savings scheme. The employee contributes 12% of the PF wage and the employer 12%, of which 8.33% is diverted to the pension scheme within the statutory ceiling. Coverage generally begins at twenty employees in a covered establishment, with voluntary coverage possible below that.
EPF is part of every monthly payroll run. Payroll computes the employee and employer shares on PF wages, splits the employer's share between EPF and EPS, files the ECR and pays the challan by the 15th of the next month. At joining, HR creates or links the UAN; at exit, it updates the exit date on the portal.
Example: on basic plus DA of ₹25,000 with contributions limited to the ₹15,000 ceiling, the employee contributes ₹1,800. The employer also pays ₹1,800, of which ₹1,250 goes to EPS and ₹550 to EPF, plus EDLI and admin charges.
The common errors are applying the ceiling for some employees and not others without a recorded choice, and missing the exit date, which blocks the member's transfer or withdrawal. Late payment attracts interest and damages under the Act, so the due date matters. HRMagix's payroll covers PF calculation and returns, per its published module list.
The Employees' Provident Fund, a statutory retirement savings scheme.
The employee contributes 12% of the PF wage and the employer 12%.
Of the employer's 12%, 8.33% is diverted to the pension scheme within the statutory ceiling.
Generally from twenty employees in a covered establishment.
Yes. Voluntary coverage is possible below twenty employees.
On the PF wage: basic plus dearness allowance, subject to the ₹15,000 ceiling where the employer applies it.
Through the ECR file uploaded to the EPFO portal, carrying each member's wages and contributions.
The UAN, which stays with the individual across employers.
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