EPFO increases contribution rates for employers

Central Government on 3 May, 2023 has notified the following clarifications under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 namely:-

1. In respect of members who have exercised joint option for contributing under the provisions of paragraph 11 of the Employees’ Pension Scheme, 1995 and who are found eligible, the employer’s contribution shall be nine and forty-ninth per cent. (9.49%) of the basic wages, dearness allowance and retaining allowance of each member by increasing one and sixteenth per cent. (1.16%) from the extant eight and one-third per cent. (8.33%); and
2. The increased contribution shall be applicable to basic wages, dearness allowance and retaining allowance to the extent such basic wages, dearness allowance and retaining allowance exceed fifteen thousand rupees per month.

This notification shall be deemed to have come into force on the 1st day of September, 2014.

Further, the central government has commenced operation of section 16 of Code on Social Security 2020 which deals with constitution of provident fund and pension fund. The Provident Fund, the Pension Fund and the Insurance Fund shall vest in, and be administered by, the Central Board in such manner as may be specified in the respective schemes.