EPF: Employee Provident Fund Contribution for New Women Worker

EPF: Employee Provident Fund Contribution for New Women Worker will be 8%  for first three years of her employment. New women worker EPF contribution of employee side will be 8% and in employer contribution in EPF will be remain same (employer EPF contribution unchanged) i.e. 12 % + admin charges + EDLI.

In the Budget 2018 FM announced to  reduce the employee provident fund contribution of New women worker for first three years from 12% to 8% in their EPF contribution.

FM Said " I propose to make amendments in the Employees Provident Fund (EPF) and Miscellaneous Provisions Act, 1952 to reduce women employees contribution to 8% for the first three years of their employment against the existing rate of 12% or 10% with no change in employers contribution."


FM also said that the governement will now contribute 12% of the wages of new employees to the EPFO for all sectors for the next three years.

The purpose behind reducing the contribution to increase the take home salary and also to increase the participation of women employees at workforce.

Normally in EPF contribution there is two part :
1.Employee Contribution in EPF (12%)
2. Employer Contribution in EPF (12% + Other charges)

Employer contribution also divided into Two Part :
1. Contribution in PF - 3.67%
2. Contribution in EPS (Employee Pension Scheme) - 8.33%


So FM proposed the new women worker will be only contributing 8% in EPF instead of 12% by this their take home salary will increase as their 4% contribution in provident fund is reduced. Employer will be contributing same as earlier it was that is 12%.