EPF Contribution Calculator for India: Employee and Employer Share
By EOR Services India. Last updated 4 November 2026.
Most EPF mistakes start with the wrong base: payroll teams calculate on gross pay when the law counts PF wages. This EPF contribution calculator takes your monthly PF wages and splits the deposit the way EPFO does, at the ₹25,000 wage ceiling that applies from 17 September 2026.
A small error per person becomes a short deposit across a team, and EPFO charges interest and damages on the gap. Use the result to budget the employer cost before payroll runs.
| Component | Rate | Per month | Per year |
|---|
Amounts are rounded to the nearest rupee, as EPFO does. The admin charge has a minimum of ₹500 a month per establishment, so a single employee figure is indicative. Treat the result as an estimate and confirm it against your payroll report.
EPF contribution rates for India in 2026
Five components make up the EPF bill. The employee pays one of them. The employer pays four, and the first two of those make up the employer's 12% that most budgets already include.
| Component | Who pays | Rate | Wage base | Monthly amount at the ₹25,000 ceiling |
|---|---|---|---|---|
| Employee EPF | Employee | 12% | PF wages up to the ceiling | ₹3,000 |
| Employer EPF | Employer | 3.67% | PF wages up to the ceiling | ₹917 |
| Employer EPS (pension) | Employer | 8.33% | PF wages up to the ceiling | ₹2,083 |
| EDLI (deposit linked insurance) | Employer | 0.5% | PF wages up to the ceiling | ₹125 |
| EPF admin charge | Employer | 0.5%, minimum ₹500 per establishment | PF wages | ₹125 |
The employer pays ₹3,250 a month at the cap, against ₹1,950 under the old ₹15,000 ceiling. Our PF wage ceiling checklist for India employers walks through who the higher ceiling pulls into coverage and how to decide who absorbs the cost.
EPF calculation examples at four salary levels
These examples use the same rounding as the calculator. A person earning ₹18,000 contributes on ₹18,000, not on the ceiling.
| PF wages | Employee EPF | Employer EPF | Employer EPS | EDLI | Admin charge | Employer total |
|---|---|---|---|---|---|---|
| ₹12,000 | ₹1,440 | ₹440 | ₹1,000 | ₹60 | ₹60 | ₹1,560 |
| ₹18,000 | ₹2,160 | ₹661 | ₹1,499 | ₹90 | ₹90 | ₹2,340 |
| ₹25,000 | ₹3,000 | ₹917 | ₹2,083 | ₹125 | ₹125 | ₹3,250 |
| ₹40,000 (capped at ₹25,000) | ₹3,000 | ₹917 | ₹2,083 | ₹125 | ₹125 | ₹3,250 |
Wages above ₹25,000 add nothing to the standard contribution unless the employee and employer agree to contribute on actual wages.
What counts as PF wages in the EPF calculation
PF wages are basic pay, dearness allowance and retaining allowance. House rent allowance, overtime and bonus usually sit outside them. The labour codes add a limit: if excluded allowances go above 50% of total pay, the excess counts as wages. An employee on ₹30,000 gross with ₹12,000 basic therefore has PF wages of at least ₹15,000, not ₹12,000.
We explain the mechanism and the take home effect in our guide to the 50% basic wage rule. For the full pay breakdown, see our salary structure in India guide.
Who must contribute to EPF
An establishment covered by the EPF Act must enrol its eligible staff. Coverage normally applies once an establishment has 20 or more employees, and smaller ones can opt in. From 17 September 2026, any employee whose PF wages are up to ₹25,000 is a mandatory member, with no application or opt in step.
Employees earning above the ceiling can still be covered with the employer's agreement. That is the voluntary option in the calculator above.
What changed on 17 September 2026
The wage ceiling rose from ₹15,000 to ₹25,000 a month. It had stayed unchanged since September 2014. The new limit applies to the provident fund, the pension scheme and the deposit linked insurance scheme together, and the rate stays at 12% for each side. Our guide to the new labour codes covers the wider changes that landed in the same period.
How and when to pay EPF
Deposit the contribution and file the electronic challan cum return (ECR) on the EPFO employer portal by the 15th of the following month. Every employee needs an active UAN and completed KYC, or the credit can fail. Late payment brings interest under Section 7Q and damages under Section 14B. Our monthly EOR payroll cycle guide shows where each statutory filing sits.
EPF contributions when you hire through an Employer of Record
If you employ people in India without your own entity, the Employer of Record becomes the legal employer. It registers each hire with EPFO, deducts the employee share, deposits the contribution and files the ECR. The amounts in this calculator are statutory costs, so they reach you on top of the service fee, which starts from $49 per employee per month at EOR Services India.
Want the full monthly cost for a hire, not just EPF? Read our guide to the cost of Employer of Record services in India, or see how our Employer of Record services in India handle registration and payroll for you. To budget the exit side as well, use our gratuity calculator.
EPF calculator FAQs
How much is the EPF contribution for an employee in India?
The employee pays 12% of PF wages, and the employer pays another 12%. The employer's 12% splits into 3.67% for the EPF account and 8.33% for the pension scheme (EPS). The employer also pays EDLI at 0.5% and an admin charge at 0.5%. At the ₹25,000 wage ceiling, that means ₹3,000 from the employee and ₹3,250 from the employer each month.
What is the EPF wage ceiling in 2026?
The EPF wage ceiling is ₹25,000 a month from 17 September 2026. It was ₹15,000 before that date. The change comes from notification S.O. 5109(E) and covers the EPF, EPS and EDLI.
Is EPF calculated on basic salary or gross salary?
EPF is calculated on PF wages, not gross salary. PF wages are basic pay, dearness allowance and retaining allowance. Under the labour codes, if excluded allowances exceed 50% of total pay, the excess is added back to wages, so the PF base can be higher than basic pay alone.
Can an employee contribute EPF on a salary above ₹25,000?
Yes, with the employer's agreement, an employee can contribute 12% on actual wages above the ceiling. The employer's EPS share stays capped at the ceiling, so the extra employer money goes to the EPF account. Confirm the arrangement with your payroll provider before you switch it on.
When must the employer deposit EPF?
The employer deposits the contribution and files the ECR by the 15th of the following month. Late payment brings interest under Section 7Q and damages under Section 14B of the EPF Act.
Who pays the employer's EPF share when you hire through an Employer of Record?
The Employer of Record registers the employee, deducts the contribution, deposits it and files the ECR. The statutory amounts reach you as a pass through cost on top of the service fee, which starts from $49 per employee per month at EOR Services India.
Does this EPF calculator cover international workers?
No. International workers follow separate EPF rules, and this calculator does not model them. Ask your payroll provider for written confirmation before you budget for one.
Sources: SGCMS regulatory update on the EPFO wage ceiling, Argus Partners paper on the September transition and Razorpay payroll guide on the new ceiling. Rates and the ceiling come from EPFO notification S.O. 5109(E).
This calculator and page are general information, not legal or tax advice. Confirm treatment for your establishment with a qualified practitioner or your payroll provider.
