AC No. 2

What is AC No. 2?

Account Number 2 (AC No. 2) refers to the Employer’s Provident Fund (EPF) administrative account used for remitting Employer’s Pension Fund contributions under the Employees’ Pension Scheme (EPS), 1995. It is one of the categorized EPF account heads maintained by the EPFO for employer contributions.

Key Features:

• Contribution Source: Part of the employer’s 12% PF contribution—8.33% goes into AC No. 2 (EPS), while 3.67% goes into EPF (AC No. 1).
• Purpose: Used to fund employees’ pension benefits under EPS.
• Deposit Frequency: Monthly, along with PF challan submission through ECR (Electronic Challan-cum-Return).
• Applicable Limit: Capped on Basic + DA up to ₹15,000 for EPS contribution.
• Monitoring: Managed under unified EPFO ECR portal.

Example

If Riya’s Basic + DA = ₹15,000, employer contribution to AC No. 2 = ₹15,000 × 8.33% = ₹1,250.

Why AC No. 2 Matters:

It ensures systematic pension funding, helping employees build a sustainable post-retirement income under EPS.