Last Updated on November 5, 2026 by Abhijit Divekar
Quick answer: From 17 September 2026, PF is worked out on wages (Basic + DA) up to ₹25,000 a month. The employee pays 12%. The employer pays 12% too, split into 3.67% to EPF and 8.33% to the pension scheme (EPS), plus 0.5% EDLI insurance and 0.5% admin charges. On ₹25,000 or more, that is ₹3,000 from the employee and about ₹3,250 from the employer each month.
Under the Labour Codes, if allowances are more than half of pay, the excess counts as wages too.
| Per employee, per month | Amount |
|---|---|
| Employee PF (12%) | – |
| Employer to EPF | – |
| Employer to EPS (8.33%, wages up to ₹25,000) | – |
| EDLI insurance (0.5%, wages up to ₹25,000) | – |
| Admin charges (0.5%) | – |
| Total employer cost | – |
| Total deposited to EPFO (employee + employer) | – |
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How the PF calculator works
PF is calculated on PF wages, which means Basic plus Dearness Allowance, not gross salary. Contributions are compulsory on wages up to the ₹25,000 ceiling. Above the ceiling, the employer and employee can agree to contribute on full wages, but the pension (EPS) and EDLI parts stay limited to ₹25,000.
The employee’s 12% all goes to their EPF account. The employer’s 12% is split: 8.33% goes to the pension scheme and the rest (3.67%) goes to EPF. EDLI insurance and admin charges are paid by the employer on top. Admin charges have a minimum of ₹500 a month per establishment.
Worked examples
| Item | PF wages ₹20,000 | PF wages ₹40,000 (ceiling) | ₹40,000 on full wages |
|---|---|---|---|
| Employee PF | ₹2,400 | ₹3,000 | ₹4,800 |
| Employer to EPF | ₹734 | ₹917 | ₹2,717 |
| Employer to EPS | ₹1,666 | ₹2,083 | ₹2,083 |
| EDLI | ₹100 | ₹125 | ₹125 |
| Admin charges | ₹100 | ₹125 | ₹200 |
| Employer cost | ₹2,600 | ₹3,250 | ₹5,125 |
Rules employers should know
- Who must join: in a PF-registered establishment, every employee with PF wages up to ₹25,000 must be in EPF, EPS and EDLI from 17 September 2026. PF registration is compulsory once you have 20 employees.
- Above the ceiling: an employee with PF wages above ₹25,000 can join voluntarily with the employer’s consent.
- Pension (EPS): only for employees whose wages were up to ₹25,000 when they joined (or on 17 September 2026). For others, the full employer 12% goes to EPF.
- Due date: pay each month’s PF by the 15th of the next month.
- ESIC is separate: it applies to employees with wages up to ₹21,000 (0.75% employee, 3.25% employer).
PF calculator: questions employers ask
What is the PF wage ceiling in 2026?
₹25,000 a month from 17 September 2026, under notification S.O. 5109(E). It was ₹15,000 before.
How much PF does the employer pay?
12% of PF wages up to ₹25,000 (3.67% to EPF and 8.33% to EPS), plus 0.5% EDLI and 0.5% admin charges. That is about ₹3,250 a month for an employee at or above the ceiling.
Is PF calculated on gross salary?
No. PF is calculated on Basic + DA. Under the Labour Codes, if allowances are more than half of total pay, the excess is added to wages for PF.
Can PF be paid on wages above ₹25,000?
Yes, if the employer and employee agree. The pension and EDLI parts still stop at ₹25,000; the extra employer share goes to EPF.
What is the minimum PF admin charge?
₹500 a month per establishment with at least one contributing member, even if 0.5% of wages works out lower.
Related guides
- EPF wage ceiling is now ₹25,000: what changes
- PF and ESIC registration guide for employers
- Gratuity calculator
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Talk to us about payrollA guide for employers, not legal advice. Estimates only; EPFO rounds each account to the rupee. Last checked 5 November 2026.