When is PF contribution mandatory and what is the current rate?
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Below is a comprehensive legal analysis based on Indian law for your question.
Employees' Provident Fund (EPF) contribution under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 is mandatory for establishments with 20 or more employees. The contribution is 12% of basic wages each by the employer and employee, with 8.33% of the employer's share going to the Employees' Pension Scheme (EPS). Membership is mandatory for employees drawing basic wages up to Rs. 15,000 per month. The scheme is now administered under the Code on Social Security, 2020.
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