Free payroll tool
PF calculator: employee and employer EPF contribution
Enter monthly basic + DA to see the 12% employee share, how the employer's share splits between EPF and EPS, and what EDLI and admin charges add to the monthly PF deposit.
How this PF calculation works
PF is worked out on EPF wages: basic pay plus dearness allowance, plus retaining allowance where it is paid. HRA, overtime, bonus and commission are not part of it. The employee and the employer each contribute 12% of these wages, but the employer's share does not all land in the employee's PF account.
The EPS part goes to the Employees' Pension Scheme and builds the monthly pension, not the withdrawable PF balance. EDLI pays for the employee's life-insurance cover and admin charges go to EPFO. Both are paid by the employer on top of the 12%, and neither is deducted from salary.
Worked example
An employee earns basic + DA of ₹25,000 and the employer restricts contributions to the ₹15,000 ceiling. EPF wages are ₹15,000.
- Employee EPF: ₹15,000 × 12% = ₹1,800, deducted from salary.
- Employer EPS: ₹15,000 × 8.33% = ₹1,249.50, rounded to ₹1,250.
- Employer EPF: ₹1,800 − ₹1,250 = ₹550.
- EDLI: ₹15,000 × 0.5% = ₹75. Admin charges: ₹15,000 × 0.5% = ₹75.
- Employer pays ₹550 + ₹1,250 + ₹75 + ₹75 = ₹1,950.
- Total monthly deposit: ₹1,800 + ₹1,950 = ₹3,750, or ₹45,000 a year.
Of that, ₹2,350 a month (₹28,200 a year) is credited to the employee's PF account and ₹1,250 a month goes to the pension fund.
The ₹15,000 wage ceiling
PF membership is mandatory for employees whose basic + DA is up to ₹15,000 a month. For higher earners, many employers still contribute but only on ₹15,000, which caps the employee deduction at ₹1,800. Contributing on the full basic + DA is allowed but optional for the employer. Untick the ceiling option to see that case.
The pension share behaves differently. EPS is always calculated on wages up to ₹15,000, so it never goes above ₹1,250. When PF is paid on full wages, everything above that goes to the EPF account instead. EDLI is capped the same way.
The 10% rate and voluntary PF
Certain establishments notified under the EPF Act, such as units in the jute, beedi, brick, coir and guar gum industries, pay 10% instead of 12%. Only the total changes. The EPS share stays at 8.33% of wages up to ₹15,000, so the employer's EPF balance shrinks to about 1.67% of those wages.
Voluntary PF lets an employee put in more than 12%, up to 100% of basic + DA. It is credited to the same PF account and earns the same interest. The employer is not required to match it, and it does not change EPS, EDLI or admin charges.
What this calculator does not cover
- Non-EPS members. Employees who joined on or after 1 September 2014 with wages above ₹15,000, and members past 58, are generally not in EPS. For them the full employer share goes to EPF.
- Absent days. PF is due on wages actually earned. If loss of pay cuts basic + DA for the month, enter the reduced figure.
- Establishment minimums. Admin charges are at least ₹500 a month for the whole establishment, so very small payrolls pay more than 0.5% in total.
- Wage definition under the labour codes. Under the Code on Wages, if excluded allowances exceed 50% of total pay, the excess counts as wages. That can raise PF wages. Rules are still being notified, so check how this applies to you.
The full month's PF is deposited through the ECR on the EPFO portal by the 15th of the following month. Our guide on how PF is calculated covers more cases. If you run this every month for a team, PF management in Swastik Payroll works out EPF, EPS and EDLI wages from the salary run and prepares the ECR file. For the wider picture, see payroll compliance.
PF calculator FAQs
Why is the employer's EPF share smaller than 12%?
The employer does contribute 12%, but 8.33% of wages up to ₹15,000 goes to the pension scheme. Only the balance, 3.67% when wages are at or below ₹15,000, reaches the employee's PF account.
Are EDLI and admin charges deducted from the employee's salary?
No. Only the employee's 12% (and any VPF) is deducted. EDLI and admin charges are employer costs, which is why they often appear inside CTC.
My basic is ₹40,000. Is PF compulsory on the full amount?
Not by default. Contributions on wages above ₹15,000 are optional for the employer, so many restrict PF to ₹15,000. Some pay on full basic by policy or agreement. The payslip or offer letter will show which applies.
When does an establishment have to register for PF?
Registration is mandatory once an establishment employs 20 or more people. Smaller establishments can opt in voluntarily.
Results are estimates for planning. Statutory rates, ceilings and tax rules change; check the current notifications or consult your CA before using a figure for payroll or tax filing.
Stop calculating payroll by hand
Swastik Payroll applies these rules to every employee automatically, straight from attendance, and produces payslips and PF/ESIC files.