Learn EOBI Contribution Calculation Formula

Who Contributes?

Employer: contributes 5% of the minimum wage, capped at Rs. 276 per month.

Employee: contributes 1% of the minimum wage.

Learn EOBI Contribution Calculation Formula




How is it calculated?

Determine the Minimum Wage:

Use the government-declared minimum wage for your industry or region.

If the employee's basic salary is lower than the minimum wage, use the basic salary instead.

Calculate the employer's contribution:

Multiply the minimum wage by 5%.

Cap the contribution at Rs. 276 per month.

Calculate the employee's contribution:

Multiply the minimum wage by 1%.

Total contribution: 



Add the employer's contribution and the employee's contribution. 


Round the calculated contributions to the nearest rupee.

Amounts below 50 paise are ignored, and amounts 50 paise and above are treated as one rupee.



For Example:

Minimum wage = Rs. 18,000

Basic salary = Rs. 15,000 (lower than the minimum wage)

Employer's contribution = Rs. 15,000 * 5% = Rs. 750 (capped at Rs. 276)

Employee's contribution = Rs. 15,000 * 1% = Rs. 150

Total contribution = Rs. 276 + Rs. 150 = Rs. 426



Frequently Asked Questions:

When is the EOBI contribution due?

The EOBI contribution is due by the 15th of every month for the previous month's contributions.



What happens if I miss a contribution payment?

You will be charged a late payment penalty of 10% of the unpaid contribution.



Can I withdraw my EOBI contributions?

You can withdraw your EOBI contributions in certain cases, such as permanent disability, retirement, or death. 

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