Archive · 4 Aug 2025
EPFO Employer Contribution: Key Points and Breakdown
The Employees' Provident Fund (EPFO) helps workers save for retirement.
Companies with 20+ employees pay in 12% of a worker's pay.
Part goes into the worker's retirement fund (EPF), some into a pension (EPS), and a bit for insurance (EDLI).
Smaller companies sometimes pay less.
The government sets interest rates, and you might save on taxes when you contribute.
Employers contribute 12% of an employee's basic salary.
3.67% of employer contribution goes to EPF, 8.33% to EPS, and 0.50% to EDLI.
A 10% rate applies to establishments with less than 20 employees.
Employer contributions to EPS are capped at Rs 15,000 monthly salary.
Employee contributions are eligible for tax deductions under Section 80C.
- Who
- Employers and Employees.
- What
- Employer contributions to the Employees' Provident Fund.
- When
- Ongoing.
- Where
- Nationwide in India.
- Why
- To provide financial security for employees after retirement.
- Employer Contribution
- 12% of basic salary
- EPF Contribution
- 3.67% of employer contribution
- EPS Contribution
- 8.33% of employer contribution
- EDLI Contribution
- 0.50% of employer contribution
- EPS Salary Cap
- Rs 15,000 monthly
- Tax Benefits
- Employee contributions eligible for 80C deductions
- Employer Contribution Cap
- Rs 7.5 lakh annually
- EPFO Inception
- November 15, 1951
