Staff provident fund organization

The PF scheme run by the EPFO i.e. Employees Provident Fund Organization is necessary for all private companies, which more than 20 employees work. Under this scheme, the company has to put 12% of its employee's basic salary in PF account. That is, both the employee and the company have to collect money in PF. But many times it appears in the pay slip that the company's contrast is less than your contribution. Why does this happen

How does the company's contrast in PF works?

Whatever money is deposited in PF. He does not go directly to the bank PA. Its contribution is different, including retirement benefit, pension scheme and insurance scheme. In these three, money goes according to the rule of EPFO. The calculation of this is through one example.

Retirement Benefit (EPS - Employee Pension Scheme) Insurance Scheme

This is how calcullet is

Suppose if you put 2,000 rupees in PF every month from your salary. So the company will also have to enter Rs 2,000, so the total Rs 4,000 will be deposited in your PF account every month. It also gets annual interest on this. At the same time, those who put 2,000, the whole of the whole goes to your PF account. But the company's ₹ 2,000 is divided. He does not go to the entire PF account, out of Rs 2000, ₹ 611 PF account and 8.33% goes to EPS i.e. pension scheme. Therefore, the company's PF contribution is less visible in the pay slip, because their entire money does not go directly to PF, but some part goes to the pension scheme. Both the company and the employee put 12% salary, but the company's money is divided into PF and pension, so many times it seems that the company is putting less.