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  • Category: Finance & Banking

    I had a query regarding PF withdrawal amount


    If you have a query regarding PF withdrawal procedure, our technical experts are here to answer them.

    I recently received my PF amount . Why is there a deduction towards employer share. For example, if the employee share is Rs.988 per month, I see a deduction of Rs.302 towards the employer share. Hence, the pension contribution is settled at Rs.686 per month.

    What is the basic procedure in which PF withdrawal amount is calculated and is there any method by which the above deduction amount is calculated?
  • #12976
    EPF withdrawal process:
    - it can be withdrawn on retirement
    - it can be withdrawn if unemployed for a period of 2 months or more
    - Partial EPF can be withdrawn under certain circumstances such as marriage, education, purchase of land it construction, home loan repayment, renovation of house.
    - It can be withdrawn by offline and online method.

    Method of EPF calculation:
    - EPF = employee's ( 12% basic salary + DA)*
    - Employer contribution is (3.67% basic salary+ DA).*
    *When the Basic Pay + DA is less than or equal to Rs 15000.

    - If above RS 15000 than
    - EPF = employee's ( 12% basic salary + DA)
    Employer's contribution EPF = ( 12% basic salary - 8.33% of 15000)
    - EPF = employee's ( 12% basic salary + DA)
    Employer's contribution (3.67% of Rs 15000)
    - EPF = Employees contribution (12% of 15000)
    Employer's contribution ( 3.67 % of 15000)

    Hope this helps.

  • #12977
    Employer share is not a "deduction". It is an addition to your share. If your share is Rs.988 then your employer would give Rs.302 in addition taking your total PF deposited to Rs.1290.
    You can check your PF passbook using the Umang app. You will just need your UAN number for this.

    In addition to this Government of India gives an annual fixed interest rate which you can see in the app too.


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