In the past, rates and proportion of contribution has been revised and improved many times as per the demand of that time. Till the third amendment in the Employees Provident Fund act, the contribution rate was not uniform for employees working in different levels of employment. The rate was contingent to the salary of employees. The third amendment of the Employees Provident Fund act in September 1971, fixed the rate of contribution to ten percent for all employees. The employers were also required to make a matching contribution on this.
Since the sixth amendment of the Employees Provident Fund act in February 1991, members are required to contribute at least 10 percent of their salary on their PF account and the employers are require to supplement it by additional sum equivalent to employee's contribution.
The year of revision along with proportion of contribution between employees and employers is depicted below:
|
Year |
Proportion
of Contribution |
|
|
|
Employees'
Contribution |
Employers'
Contribution |
|
1962/1963
|
Rs.
2 to 475 based on salary |
10
percent of employees' contribution. |
|
1967/1968
|
10
percent of employees' salary |
50
percent of employees contribution for non officers 25
percent of employee's contribution for officers. |
|
1971/1972
|
10
percent of employees' salary |
Matching
contribution |
|
1991/2007 |
At
least 10% of employees' salary |
Matching
contribution |