Question
What percentage from the employer’s contribution
towards EPF is directed towards Employees’ Pension Scheme?Solution
Employee Provident Fund (EPF) is a retirement benefit scheme maintained by the Employees’ Provident Fund Organization (EPFO). The employee and the employer contribute to the EPF scheme on monthly basis in equal proportions of 12% of the basic salary and dearness allowance. Out of the employer’s contribution, 8.33% is directed towards the Employee Pension Scheme (EPS), 0.50% towards Employees’ Deposit-linked Insurance scheme (EDLI) and the remaining is retained in EPF.
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