EPF / PF Services
EPF Contribution Rules
How the 12% + 12% split works between EPF, EPS and EDLI.
EPF service guide
Step-by-step
EPFO member portal · UMANGAbout this guide
Both employer and employee contribute 12% of basic wages + DA + retaining allowance. The employee share goes fully into EPF; the employer share is split between EPF and the Employees’ Pension Scheme. Employers also pay EDLI and admin charges.
| Item | Details |
|---|---|
| Employee | 12% → EPF |
| Employer EPF | 3.67% |
| Employer EPS | 8.33% (on wages up to ₹15,000 → max ₹1,250) |
| EDLI | 0.5% (max ₹75) |
| Admin charges | 0.5% (min ₹500 per establishment) |
| Reduced rate | 10% for certain establishments/sick units |
| Wage ceiling | ₹15,000 for mandatory coverage |
How contribution is processed
- Payroll deductionEmployee 12% deducted from salary
- ECR filingEmployer files Electronic Challan-cum-Return by the 15th of next month
- CreditContributions credited to Member ID
- InterestCalculated on monthly running balance
Contribution example
| Basic + DA ₹25,000 | Employee ₹3,000 · Employer EPF ₹1,750 · EPS ₹1,250 |
| Basic + DA ₹40,000 | Employee ₹4,800 · Employer EPF ₹3,550 · EPS ₹1,250 |
| Basic + DA ₹15,000 | Employee ₹1,800 · Employer EPF ₹550 · EPS ₹1,250 |
Useful tips
- Check if employer contributes on full basic or capped ₹15,000
- Higher-pension option (Supreme Court 2022) affects EPS split for eligible members
Frequently asked questions
Is employer contribution part of CTC?
Often yes — check your offer letter.
Can I contribute more than 12%?
Yes, through VPF.
Information is for education and comparison. Interest rates are notified by the Government every quarter and scheme rules can change — confirm with India Post, your bank, EPFO or PFRDA before investing. FinancePortal is not a financial or tax adviser.