EPF, EPS, EDLI & admin charges

EPF / PF Calculator

Provident Fund is 12% from the employee and 12% from the employer. The part most people get wrong is the employer half: it is not all PF — 8.33% goes to the pension scheme (EPS) and only the rest to EPF.

Employee contribution₹1,800deducted from your salary
Employer contribution₹1,800EPS + EPF
PF wage used(capped)₹15,000
Employee 12%₹1,800
Employer → EPS 8.33%(pension, capped at ₹15,000 wage)₹1,250
Employer → EPF(the rest of the 12%)₹550
EDLI 0.5%(employer only)₹75
Admin charges 0.5%(employer only)₹75
Total into your PF account₹3,600
Per year₹43,200

How it is calculated

Provident Fund is 12% of PF wages from the employee and 12% from the employer. PF wages normally means Basic + DA.

The employer half is where most payslips are misread. It is not all provident fund: 8.33% of wages goes to the Employees' Pension Scheme (EPS) and only what is left of the 12% reaches EPF. EPS is a slice of the 12%, never a cost sitting beside it. EPS is also capped at ₹15,000 of wages, so it never exceeds ₹1,250 a month.

On top of the 12%, the employer pays EDLI at 0.5% (life insurance cover) and administration charges at 0.5%. Both are calculated on wages capped at ₹15,000, whatever the employer does about the main ceiling.

Turning the ceiling off raises the employee and employer 12%, but EPS, EDLI and admin charges stay on the ₹15,000 ceiling — that ceiling is statutory and is not the employer's to waive.

Frequently asked questions

What is the PF contribution rate in India?
12% of PF wages from the employee and 12% from the employer. PF wages normally means Basic + DA.
How does the employer 12% split?
8.33% of wages (capped at ₹15,000, so a maximum of ₹1,250) goes to the Employees' Pension Scheme, and whatever remains of the 12% goes to EPF. EPS is a slice of the 12%, never an extra cost beside it.
What is the ₹15,000 PF wage ceiling?
PF is statutorily payable on wages up to ₹15,000 a month. An employer may contribute on the full wage voluntarily, but EPS, EDLI and admin charges stay on the ₹15,000 ceiling in every case.
What are EDLI and PF admin charges?
EDLI is a 0.5% employer contribution towards life insurance cover, and administration charges are a further 0.5%. Both are employer costs, calculated on PF wages capped at ₹15,000.
Is PF mandatory?
For establishments with 20 or more employees, yes. An employee earning above ₹15,000 in Basic + DA at the time of joining may be treated as an excluded employee, subject to the scheme rules.
What is VPF?
Voluntary Provident Fund is an additional employee-only contribution above the statutory 12%. The employer does not have to match it, and it earns the same interest rate as EPF.

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