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. 

Rounding:

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.

Example:

 

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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