EPFO Rule: Can I contribute more than 12% to my EPF account? Learn what the EPFO rules say...
EPFO Rule 2025: The Employees' Provident Fund (EPF) scheme, designed to safeguard employees' savings, often raises the question: Can employees contribute more than 12% of their salary? The EPFO has clarified the rules regarding this, and every working individual should be aware of them. Let's understand two important questions related to additional contributions, their limits, and the contribution rate in EPF.
1. Can I contribute more than 12%?
Yes. According to EPFO rules, any employee can contribute more than their regular 12% EPF deduction as a voluntary contribution. This contribution depends on the employee's discretion; they can choose to contribute more or not. The advantage is that your retirement savings grow faster, and the interest earned on EPF also applies to the increased contribution.
However, it's important to note that the total contribution (regular + additional) can only be made on a salary base of up to ₹15,000 per month. The employer (company) can limit its contribution to only the statutory rate, i.e., 12%.
If an employee's salary is more than ₹15,000 and they wish to have EPF deducted from their entire actual salary, they can do so. However, this requires the permission of the Assistant Provident Fund Commissioner (APFC) and the Regional Provident Fund Commissioner (RPFC), as stipulated in Paragraph 26(6) of the EPF Scheme.
2. What is the EPF contribution rate for a member?
According to EPFO rules, an employee contributes 12% of their Basic Salary + Dearness Allowance + Retaining Allowance to EPF. The employer also contributes 12%, but the entire amount doesn't go into EPF. 8.33% goes to the Pension Fund (EPS) and 3.67% to EPF. In this way, the future, pension, and savings of working individuals are all securely balanced under the EPF scheme.
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