Question
I see a PF deduction on my payslip every month and I am not sure how the 12% is split between me and my company.
Answer
Both you and your employer contribute 12% of your basic pay plus dearness allowance to EPF each month. Your full 12% goes into your EPF account. Your employer 12% is split: 8.33% goes to the Employee Pension Scheme (EPS) and only 3.67% goes to your EPF account. EPS contributions are capped on a wage ceiling of Rs 15,000, so the EPS portion is limited to about Rs 1,250 per month. The EPF interest rate is 8.25%. Project your retirement corpus with our EPF calculator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.