In compliance of notification dated 18^th May, 2020 of Ministry of Labour & Employment, regarding EPF contribution, those establishments which have not availed the benefit under the PMGKY scheme, in such establishments, EPF contribution both Employer’s as well as Employee’s share of EPF contribution each will be @ 10% of EPF wage.  The employer share of PF contribution cannot be higher than 10%.

EPFO is not empowered to direct any employer to reduce its share of provident fund contribution less than 12% of the wages for those employees who has been drawing wages more than Rs.15,000 per month and the employer has been contributing upon the higher  salary.

*A/c-1 EPF contribution-Employer’s share                            @ 1.67% (10% – 8.33%)
A/c-1 EPF contribution-Employee share                                @ 10%
A/c-2 Admin Charges                                                              @ 0.5%
A/c-10 EPS contribution (Out of Employer share of 10%)     @ 8.33%
A/c-21 EDLI                                                                             @ 0.5%
A/c-22 EDLI Admin charges                                                   Already Exempt

*The above break-up is as per requirement of EPFO challan format. Total contribution of Employer and Employee is @ 10% each.

Considering the difficulty faced by the establishments in the timely deposit of contributions or administrative charges due for any period during the lockdown, the EPFO has decided that such delays due to operational or economic reasons shall not be treated as default and penal damages should not be levied for such delay. Circular dated 15.05.2020 has been issued to Field Offices of EPFO containing instructions to the effect that no proceeding shall be initiated for levy of penal damages in such cases which is available under TAB “COVID-19” on the home page of EPFO website.