EPFO Employer Contribution Unveiled: 7 Must-Know Facts That Could Change Your PF Game | News

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The Employees’ Provident Fund Organisation (EPFO) mandates companies with 20+ employees to contribute to the Provident Fund (PF) scheme for workers’ retirement benefits. Both employee and employer contribute 12 percent of the employee’s basic salary monthly. While the employee’s full 12 percent goes to their PF account, the employer’s 12 percent is split—8.33 percent towards the Employees’ Pension Scheme (EPS) and 3.67 percent into the Provident Fund. This split often makes the employer’s PF contribution appear less than the employee’s. Employees can check these contributions, including the breakdown, in their EPFO member passbook for clarity and tracking.

https://zeenews.india.com/photos/business/epfo-employer-contribution-unveiled-7-must-know-facts-that-could-change-your-pf-game-2940722Updated:Aug 03, 2025, 11:15 AM IST

Who Needs to Enroll in EPF?

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All companies with 20 or more employees must register for the Employees’ Provident Fund (EPF) scheme as mandated by the EPFO. This helps workers build retirement savings.

How Is the Contribution Calculated?

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Both the employee and employer contribute 12 percent each of the employee’s basic salary to EPF every month.

Employee’s Contribution Breakdown

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The entire 12 percent from the employee’s basic salary goes into their own EPF account. This full amount earns annual interest and grows over time.

Understanding Employer’s Contribution

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Although the employer also contributes 12 percent, it is not contributed entirely to the employee’s EPF account. The employer’s contribution gets split into different EPF-linked schemes.

Employer’s Contribution Split

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Of the employer’s 12 percent:

8.33 percent goes to the Employees’ Pension Scheme (EPS)

3.67 percent goes to the Employees’ Provident Fund (EPF)

Why Employer’s PF Contribution Appears Less Than Employee’s

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For example, if you contribute Rs 2,000 monthly to your EPF, the employer contributes Rs 2,000 as well, but only Rs 611 (3.67 percent) goes to your EPF account. The rest goes to the pension scheme (EPS).

How to Check Your Contributions

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You can view detailed contributions made by both you and your employer in your EPFO member passbook. This shows the split and helps track your retirement benefits.