EPF Account Number Contribution Rate: Many of the employee and employer’s(especially new to this field ) may not be aware of the EPF Account Number Contribution Rate. Here in this post, we’ll discuss the account numbers and usage of these accounts while depositing the EPF challan on the Unified portal. Generally, the employee knows that his/her 12% is deducting and 12% is paid by his company or the employer. But in actual total 25% of the PF is deposited and bifurcations of those accounts are given below.
EPF Account Number Contribution Rate: A/C 1, A/C 20 – Latest Information
The Employees’ Provident Fund (EPF) is one of the most important retirement savings schemes for employees in India. Managed by the Employees’ Provident Fund Organisation (EPFO), the EPF aims to provide financial security to employees after retirement by collecting monthly contributions from both employees and employers.
An EPF account comprises different accounts (such as A/C 1, A/C 20) where the contributions are segregated based on various types of contributions, and different rates of contribution apply to these accounts. Understanding the contribution rates and the significance of these different accounts is essential for employees and employers alike.
In this post, we will explore the EPF account number, the contribution rates to different accounts, and the roles of A/C 1 and A/C 20 in the EPF system. Additionally, we’ll provide you with the latest information regarding contribution rates.
What is the EPF Account Number?
The EPF account number is a unique identification number assigned to each EPF member upon registration. The EPF number is crucial for tracking an individual’s provident fund balance and contributions. The Universal Account Number (UAN) is the primary ID associated with the EPF account, linking all the accounts of an employee across different organizations they may work for over time.
A typical EPF account number consists of several components:
- Code of the EPF Office – Indicates the EPFO regional office.
- Establishment Code – A unique number assigned to the employer.
- Account Number – A unique number that is assigned to the employee’s account.
EPF Account Number Contribution Rate: Overview
Under the EPF scheme, both the employee and employer contribute a specific percentage of the employee’s basic salary and dearness allowance towards the EPF. The total contribution rate is divided into different components, with each component being directed to a different EPF account.
The current EPF contribution rate for most employees is as follows:
- Employee Contribution: 12% of Basic + Dearness Allowance
- Employer Contribution: 12% of Basic + Dearness Allowance
Of this 12%, the employer’s contribution is further divided into different accounts:
- Employee Provident Fund (EPF) – 3.67%
- Employee Pension Scheme (EPS) – 8.33%
- Employee Deposit Linked Insurance (EDLI) – 0.50%
- Administrative Charges (employer’s share) – 0.50%
The employee contribution is entirely directed towards the EPF account, while the employer’s contribution is divided between the EPF, EPS, and EDLI accounts.
A/C 1: Employee Provident Fund (EPF)
A/C 1 is the primary account in an EPF scheme, where the bulk of the employee’s and employer’s contributions go. It is also commonly referred to as the Employee Provident Fund (EPF) Account. The funds in this account are invested by EPFO in government securities, and the interest earned is credited to the EPF balance annually.
Contribution Rate to A/C 1:
- Employee’s Contribution: 12% of the employee’s basic salary + dearness allowance (DA).
- Employer’s Contribution: 3.67% of basic + DA (The rest of the employer’s contribution is diverted to other schemes like the EPS and EDLI).
It’s important to note that if the employer contributes more than the prescribed rate, the excess contribution is typically allocated to the Employee Provident Fund. However, the contribution to EPS is capped at a salary of ₹15,000 per month. If an employee’s salary exceeds ₹15,000, the additional contribution over ₹15,000 will be diverted entirely to the EPF account, not to the EPS.
Interest Rate on EPF Account:
- The interest rate on the EPF account is decided by the Government of India annually. It has typically ranged between 8% to 8.5% over the years.
A/C 20: Employee Pension Scheme (EPS)
A/C 20 refers to the Employee Pension Scheme (EPS), which is a retirement benefit scheme designed to provide pension benefits to employees after retirement. The EPS is managed by EPFO, and it is funded through a portion of the employer’s contribution.
The EPS scheme ensures that employees who have contributed to the EPF for a specified minimum number of years are eligible for a pension after reaching the age of 58. The amount of pension depends on the years of service and the average salary during the employee’s career.
Contribution Rate to A/C 20:
- Employer’s Contribution: 8.33% of Basic + DA (subject to a maximum of ₹15,000 of basic salary; therefore, the maximum contribution to the EPS is ₹1,250 per month).
- Employee’s Contribution: No direct contribution from the employee towards the EPS.
Important Note: The contribution to the EPS is capped at ₹15,000 of the monthly salary. If an employee’s salary exceeds ₹15,000, only ₹1,250 will be contributed towards the pension scheme.
Eligibility for EPS Pension:
- To be eligible for EPS benefits, an employee must have completed at least 10 years of service under EPF, and contributions should have been made towards the EPS during that period.
- The pension is calculated based on the pensionable salary (average salary of the employee during the last 60 months) and the number of years of service.
How Are the EPF Contributions Divided?
As mentioned, both the employee and employer contribute towards the EPF scheme. The employer’s contribution is divided into three main accounts: A/C 1 (EPF), A/C 20 (EPS), and A/C 21 (EDLI).
- Employee Provident Fund (EPF) – A/C 1: The primary account where contributions from both the employee and employer go. The total contribution from the employer’s side towards this is 3.67%.
- Employee Pension Scheme (EPS) – A/C 20: The employer contributes 8.33% of the employee’s salary towards this account. However, the contribution is capped at ₹1,250 per month, which corresponds to a salary of ₹15,000.
- Employee Deposit Linked Insurance (EDLI) – A/C 21: This scheme provides insurance benefits to the employee’s family in the event of the employee’s death. The employer contributes 0.50% of the basic salary towards this account.
Recent Changes in EPF Contribution Rates
In recent years, the Government of India has made several efforts to streamline and reform the EPF contribution structure. Some of the significant changes include:
- Higher Employer Contributions for workers in small and medium enterprises (SMEs) to promote employee benefits.
- Increased Employee Pension Scheme (EPS) benefits: Recent changes in the calculation of EPS pensions ensure better returns for long-term contributors.
Conclusion on EPF Account Number Contribution Rate
The EPF Account Number Contribution Rate, specifically for A/C 1 and A/C 20, plays a crucial role in ensuring employees have access to retirement savings, pension benefits, and insurance coverage under the EPF scheme. Employees should carefully track their contributions and understand how their salaries and employer contributions are divided into various EPF accounts.
The current contribution rates ensure that the system remains sustainable while also providing security for employees post-retirement. With regular updates in the interest rate, contribution rates, and regulations, staying informed is crucial to fully benefiting from the EPF scheme. Always ensure that your contributions are aligned with the applicable rates, and make use of EPF portals to check and track your balance and contributions regularly.
EPF ACCOUNT NUMBER CONTRIBUTION RATE:
EPF Account Number Contribution Rate
THE EPF Account Number Contribution Rate Chart
| A/C – 1 | A/C – 2 | A/C – 10 | A/C – 21 | A/C – 22 |
| PF Share (EE+ER) | Pension Share (ER) | Admin (ER) | EDLI (ER) | Admin (ER) |
| 15.67 % | 8.33% | 0.5% | Now- 0.5% w.e.f (01.06.18) |
EPFO ACCOUNT 1 (EE-A/C-1)
This account belongs to the employee share. Total 15.67% of the contribution goes to account-1. Containing 12%+3.67% of the pension fund. If, employee wanted to withdraw partially this money. He/she can apply for of Online EPF Advance through the Online portal or through Ummang App. There are various reasons to withdraw partial PF.
EPFO ACCOUNT 2 (ER-A/C-2)
During the online EPF challan submission by the employer, the Pension fund contributed by the bye employer (8.33%) goes into this account.
EPFO ACCOUNT 10 (ER-A/C-10):
Administration charges go into this account. Total contribution paid by the employee is 12 % and 12+1=13% is contributed by the employer. This 0.5% is paid to EPFO as an administration charge for maintenance and providing their online/offline/SMS etc services charges.
EPFO ACCOUNT 21 (ER-A/C-21):
EDLI (Employee deposited linked Insurance) is a kind of insurance policy for the employees of the employer. The total percentage of the amount goes to this account is 0.5 % and this 0.5% of the contribution is being paid by the employer. Earlier this contribution was 0.85 % than reduced to 0.65% and now from 01-06-2018, the EDLI charges are 0.5%.
The main reason to reduce this amount from 0.85 to 0.50 is that of the online services provided by the EPFO. A lot of offline or per work has been reduced i.e why this was reduced to 0.5%.
ADMIN CHARGES(0.1)– NOW NOT DEDUCTING
Administration charges were 0.1%. Now, these administration charges are not being deducted by the EPFO from the employer. The main reason for this is maybe the online work adopted by the EPFO department and due to the online services, the manual work and long lasting waiting lists work has been reduced. Now EPFO department is also delivering the online services like EPF Advance form, Death cases settlements within a week or Claim settlements within 10 days.
EPFO IS DOING A GREAT WORK BY PROVIDING SERVICES ONLINE THROUGH EPF MEMBER PORTAL OR THROUGH UMANG APP
ABBREVIATIONS:
EE- EE means Employee share. This percentage of the amount will be bearded by Employee himself.
ER- ER means Employer share. These percentages of the amount will be paid to the EPFO by the Employer.
This is we have in this post of EPF Account Number Contribution Rate. I hope this will give you the clear vision of the accounts and can help you in future
Information Note:
If You Want Help for The Employees Provident Fund Organization, They Can Comment Down Your Questions and Problems Below on epfoadvise.co.in, Or If You Want Any Information from Our Team Then Also Comment Below.
Disclaimer:
Kindly note that this site is not the official website of the EPFO organization. We provide information available from the internet on and the information available on epfoadvise.co.in may vary to the actual information. We collect information online from different resources including the official website of the EPFO organization.
If you find any information wrong or corrections needs to do, you are requested to kindly contact us.
Please check Account 2 in table