June 07, 2016

What does it mean EE Amt, ER Amt mentioned in SMS

The EE Amt (Employee Contribution) is an total amount deducted from your salary on every month and deposited towards your EPF account. The ER Amt (Employer Contribution) is an portion of amount which is contributed towards your same EPF account from your company. The employer divides contribution amount in to 2 portions. The one portion of amount is deposited for EPF (Employees Provident Fund) scheme and remaining portion is contributed for EPS (Employees Pension Scheme). The employee share for EPF together with EPS should be equal to your salary deduction. There will be interest for your EPF amount whereas your EPS amount does not carry any interest.

Why Employer contribution (ER) is less than or different from Employee contribution (EE)?

The amount directed for EPS from Employer contribution will not be mentioned in your SMS.

How much percentage is contributed for EPS?

An equal amount of 8.33% of basic salary has to be contributed from your employer towards EPS on every month.

How to become an EPF Member?

A person who would like to become an EPF member must be working with a company. As their own, they cannot create an EPF account.

How to register EPF account?

The person has to enroll through current employer which is covered under EPF ACT, 1952. The company has employed less than 20 employees have the option to join.

How much can you contribute?

A member can contribute at the rate of 12% payable from emoluments.

Is it possible to contribute more than 12%?

Yes. It is possible. An employee can contribute more than 12% of basic salary. The employer needs not to contribute the same.

Which interest rate is calculated for EPF scheme?

The compound interest is calculated for EPF scheme.