See the split. Project the corpus. PF calculator.
Work out the monthly EPF contribution from Basic + DA, how the employer's 12% splits between your EPF account and the pension scheme, what PF costs the employer in total, and what your balance could grow to by retirement.
Your inputs
EPS of ₹2,083 a month goes to the Employees' Pension Scheme, not your EPF balance.
Indicative only. The projection assumes the rate you enter holds every year; EPFO declares the rate each year. Contributions are rounded to the rupee as in the monthly ECR.
Get a compliance quote →How PF is calculated
PF is worked out on PF wages: Basic + DA (plus retaining allowance), with any allowances above 50% of total pay added back under the Labour Codes in force since 21 November 2025. It is never 12% of the full gross or of the CTC.
What changed on 17 September 2026
The Union Cabinet raised the EPFO wage ceiling from ₹15,000 to ₹25,000 a month with effect from 17 September 2026 (Gazette notification S.O. 5109(E)) — the first revision since September 2014. Workers earning ₹15,001–₹25,000 now come under mandatory PF, pension and EDLI cover, and every capped contribution goes up.
| Per worker, per month | Up to 16 Sep 2026 | From 17 Sep 2026 |
|---|---|---|
| Statutory wage ceiling | ₹15,000 | ₹25,000 |
| Employee PF at the ceiling (12%) | ₹1,800 | ₹3,000 |
| Maximum EPS (8.33%) | ₹1,250 | ₹2,083 |
| Employer EPF at the ceiling (3.67%) | ₹550 | ₹917 |
| Maximum EDLI (0.5%) | ₹75 | ₹125 |
| Employer PF + EDLI + admin at the ceiling | ₹1,950 | ₹3,250 |
September 2026 is a split month
EPFO's FAQs ask employers to apply the ₹15,000 ceiling to wages for 1–16 September and ₹25,000 to 17–30 September, in a single ECR for the month.
New joiners above ₹25,000
A person joining for the first time on PF wages above ₹25,000 is not covered compulsorily, but can join with the employer's consent. Existing members stay members whatever they earn.
Take-home dips, retirement savings rise
A worker on ₹25,000 PF wages now contributes ₹3,000 instead of ₹1,800 — ₹1,200 less in hand each month, but ₹2,400 more going into PF and pension together, as the employer adds ₹1,200 too.
Worked examples, rupee by rupee
Monthly figures on the ₹25,000 ceiling, rounded to the rupee as in the ECR. "Into EPF" is the employee share plus the employer's EPF share — the part that earns interest in your account.
| Basic + DA | Employee 12% | EPS | Employer EPF | EDLI + admin | Into EPF | Employer cost |
|---|---|---|---|---|---|---|
| ₹12,000 | ₹1,440 | ₹1,000 | ₹440 | ₹120 | ₹1,880 | ₹1,560 |
| ₹20,000 | ₹2,400 | ₹1,666 | ₹734 | ₹200 | ₹3,134 | ₹2,600 |
| ₹25,000 (at the ceiling) | ₹3,000 | ₹2,083 | ₹917 | ₹250 | ₹3,917 | ₹3,250 |
| ₹40,000, capped | ₹3,000 | ₹2,083 | ₹917 | ₹250 | ₹3,917 | ₹3,250 |
| ₹40,000, on actual wages | ₹4,800 | ₹2,083 | ₹2,717 | ₹325 | ₹7,517 | ₹5,125 |
On actual wages, EPS and EDLI stay capped at ₹25,000 (₹2,083 and ₹125), so everything above the cap in the employer's 12% goes to EPF, and admin charges apply on the full ₹40,000 (₹200). Employer cost = employer 12% + EDLI + admin.
For employers: PF on contract workers
Under the Code on Social Security, a principal employer can be asked to pay PF that a contractor failed to deposit for workers on its site. These checks keep that risk off your books.
PF questions, answered
Is PF calculated on basic or gross?+
On wages as defined by the Code on Social Security — Basic + DA, with allowances above 50% of pay added back. It is not calculated on the full gross salary. HRA, overtime and bonus are left out, as long as the excluded allowances stay within half of total pay.
What is the PF wage ceiling now?+
₹25,000 a month from 17 September 2026, up from ₹15,000. At the ceiling the employee pays ₹3,000 a month and the employer ₹3,000, of which ₹2,083 goes to the pension scheme.
Why is less than 24% reaching my EPF?+
8.33% of the employer's 12% (on up to ₹25,000) goes to the Employees' Pension Scheme, which pays a monthly pension instead of adding to your balance. On ₹25,000 PF wages that is ₹2,083, so ₹3,917 a month reaches your EPF account.
Can PF be restricted to ₹25,000?+
Yes. Contributions above the ₹25,000 wage ceiling are optional for both employer and employee, unless the employer has chosen to contribute on actual wages. Members already contributing on higher wages do not have to cut back because of the new ceiling.
What is the current EPF interest rate?+
8.25% for FY 2025-26, set by EPFO's Central Board of Trustees in March 2026 and ratified by the Government in June 2026. It was also 8.25% for 2023-24 and 2024-25. The rate for 2026-27 will be declared in 2027.
Is EPF interest taxable?+
Interest on your own contributions above ₹2.5 lakh a year (₹5 lakh where the employer makes no contribution) is taxable; the rest is exempt. Someone on the ₹25,000 ceiling contributes ₹36,000 a year, far below that limit.
What happens to the pension share after 58?+
Membership of the pension scheme ends at 58. If you keep working, the employer's whole 12% goes to your EPF account from then on, which is why the projection speeds up after 58.
Do contract workers get PF?+
Yes, on the same rules as direct employees. The contractor deducts and deposits PF under its own code; the principal employer should check the monthly ECR because it can be held liable for unpaid dues on workers at its site.
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