Employees Provident Fund Scheme

Contributions


Section 29: Contribution

(1) The contributions payable by the employer under the scheme shall be at the rate of ten per cent of the basic wages, dearness allowance (including the cash value of any food concessions ) and retaining allowance (if any) payable to each employee to whom the Scheme applies :

Provided that the above rate of contribution shall be twelve per cent in respect of any establishment or class of establishment which the Central Government may specify in the Official Gazette from time to time under the first proviso to sub-section (1) of Section 6 of the act.

(2) The contribution payable by the employee under the Scheme shall be equal to the Contribution payable by the employer in respect of such employee :
Provided that in respect of any employee to whom the scheme applies, the contribution payable by him may, if he so desires, be an amount exceeding 10% or 12%, as the case may be, of his basic wages, dearness allowance and retaining allowance (if any) subject to the condition that the employer shall not be under an obligation to pay any contribution over and above his contribution payable under the Act.

(3) The contribution shall be calculated on the basis of the basic wages, dearness allowance (including the cash value of any food concession) and retaining allowance (if any ) actually drawn during the whole month whether paid on daily, weekly, fortnightly or monthly basis.

(4) Each contribution shall be calculated to the nearest rupee, 50 paise or more to be counted as the next higher rupee and fraction of a rupees less than 50 paise to be ignored.

Related Keywords
Contributions  Provident Fund