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 | Restricted to the statutory wage ceiling |
| 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 statutory wage ceiling for the pension scheme is ₹15,000 per month. Employers may contribute on wages above the ceiling on the EPF side by agreement.
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 (capped at ceiling) |
|---|---|---|
| Employee EPF 12% | ₹1,800 | ₹3,000 (if contributing on full wages) |
| Employer EPS 8.33% | ₹1,250 | ₹1,250 (restricted to ₹15,000) |
| Employer EPF balance | ₹550 | ₹1,750 |
| EDLI 0.50% | ₹75 | ₹75 |
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?
- 12% of PF wages, of which 8.33% (limited to the ₹15,000 ceiling) goes to the pension scheme and the balance to the provident fund, plus EDLI and administrative charges.
- What is the PF wage ceiling?
- ₹15,000 per month for statutory purposes, including the pension scheme calculation.
Sources & references
Last Updated: 2026-09-06
Information is based on applicable laws, rules, notifications and government sources and should be verified for the latest amendments.
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