PF Contribution Rate — Employee and Employer Share
The standard rate is 12% of PF wages from the employee and a matching 12% from the employer, with the employer share further split between the pension scheme and the provident fund.
Standard contribution rates
| Component | Rate | Paid by | Notes |
|---|---|---|---|
| EPF (employee share) | 12% of PF wages | Employee | Deducted from wages each month |
| EPS (pension) | 8.33% of PF wages | Employer | Subject to the applicable pension wage ceiling and scheme rules |
| EPF (employer share) | 12% less the EPS portion | Employer | Balance of the employer's 12% |
| EDLI | 0.50% of PF wages | Employer | Insurance cover, subject to the ceiling |
| EPF administrative charges | 0.50% of PF wages | Employer | Subject to the prescribed monthly minimum |
The EPF wage ceiling was raised to ₹25,000 per month with effect from 17 September 2026. The EPS allocation and treatment of higher-wage contributions should be checked against the current scheme rules and EPFO implementation instructions.
What counts as PF wages?
PF wages generally mean basic wages plus dearness allowance and retaining allowance. Allowances that are universally paid to all employees as a matter of course have been held to form part of basic wages, so a salary structure that splits pay into many small allowances does not automatically reduce PF liability.
Worked example
| Item | PF wages ₹15,000 | PF wages ₹25,000 |
|---|---|---|
| Employee EPF 12% | ₹1,800 | ₹3,000 (if contributing on full wages) |
| Employer EPS allocation | Verify current scheme allocation | Verify current scheme allocation |
| Employer EPF balance | Employer's 12% less the applicable EPS allocation | Employer's 12% less the applicable EPS allocation |
| EDLI 0.50% | ₹75 | ₹125, subject to current rules |
Frequently asked questions
- What is the employee PF contribution?
- 12% of PF wages, deducted from the employee's monthly salary.
- What is the employer PF contribution?
- The standard employer contribution is 12% of PF wages. Its allocation between EPF and EPS must follow the current scheme rules, with EDLI and administrative charges payable separately where applicable.
- What is the PF wage ceiling?
- The notified EPF wage ceiling is ₹25,000 per month with effect from 17 September 2026. Check current EPFO instructions for payroll and pension allocation.
Sources & references
Last Updated: 2026-10-02
Information is based on applicable laws, rules, notifications and government sources and should be verified for the latest amendments.
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