Tax India ›› Indian Law ›› Labour Law ››Provident Fund Law ›› Employer's Contribution
Employer's Contribution
The employer is required to contribute the following amounts towards Employees' Provident Fund and Pension Fund
- In case of establishments' employing less than 20 persons or a sick industrial (BIFR) company or 'sick establishments' or any establishment in the jute, beedi, brick, coir or gaur gum industry. - 10% of the basic wages, dearness allowance and retaining allowance, if any.
- In case of all other establishments' employing 20 or more person-12% of the wages, D.A., etc.
A part of the contribution is remitted to the Pension Fund and the remaining balance continues to remain in Provident Fund account.
Where, the pay of an employee exceeds RS. 5,000 p.m., the contribution payable to Pension Fund shall be limited to the amount payable on his pay of RS. 5,000 only, however, the employees may voluntarily opt for the employer's share of contributions on wages beyond the limit of RS. 5,000 to be credited to the Pension Fund.
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