Free tool
PF calculator
PF is 12% of basic pay plus DA from the employee and 12% from the employer, on wages up to ₹25,000 a month from 17 September 2026. Of the employer’s share, 8.33% goes to the pension scheme (EPS) and 3.67% to the PF account. On ₹25,000 or more, that is ₹3,000 each a month.
Into your PF account, per month
₹3,917
₹47,004 a year, plus ₹24,996 to your pension
PF wages₹25,000
Your PF (12%)₹3,000
Your VPF₹0
Employer to PF account₹917
Employer to pension (EPS)₹2,083
Employer EDLI and admin₹250
Employer cost₹3,250
Estimates for general information, using rules checked 22 October 2026. Not tax or legal advice. Nothing you enter leaves your browser.
How is PF calculated?
Take an employee with basic pay plus DA of ₹30,000 a month, whose employer works out PF on wages up to the ceiling. PF wages are ₹25,000.
| Part | Rate | Per month |
|---|---|---|
| Employee PF | 12% | ₹3,000 |
| Employer to pension (EPS) | 8.33% | ₹2,083 |
| Employer to PF account (EPF) | 3.67% | ₹917 |
| Employer EDLI insurance | 0.5% | ₹125 |
| Employer admin charges | 0.5% | ₹125 |
The PF account gets ₹3,917 a month, ₹47,004 a year, before interest. If the employer worked out PF on the full ₹30,000 instead, the employee would pay ₹3,600, and the employer’s extra ₹600 would go to the PF account, because the pension share stays at ₹2,083. Figures are rounded to the rupee.
What is the PF wage ceiling?
The wage ceiling is the monthly PF wage up to which PF is compulsory. It went up from ₹15,000 to ₹25,000 from 17 September 2026 (S.O. 5109(E)). Employees with PF wages up to ₹25,000 must be enrolled, and contributions are worked out on wages up to that amount. For September 2026, the old ceiling covers 1 to 16 September and the new one 17 to 30 September. More in what the ₹25,000 ceiling changes for employers.
How much of the employer’s PF goes to pension?
8.33% of wages up to ₹25,000 goes to the Employees’ Pension Scheme, so at most ₹2,083 a month. The rest of the employer’s 12%, 3.67% on capped wages, goes to the employee’s PF account.
What does the employer pay on top of 12%?
EDLI insurance at 0.5% of PF wages and admin charges at 0.5%, with a minimum of ₹500 a month per establishment for admin charges. Neither is taken from the employee’s pay.
For employees earning up to ₹21,000 a month, ESI is due as well; the ESI calculator works it out.
Run PF for the whole team
Peoplo.ai works out PF, EPS, EDLI and admin charges for every employee in each payroll run, designed to support the ₹25,000 ceiling and the split September. Before you approve, the payroll anomaly check flags anyone whose PF looks wrong, such as a missing UAN or PF on the wrong wage.
How it is worked out
The calculator takes your PF wages: basic pay plus DA, up to ₹25,000 unless you choose full wages. You pay 12% of that, plus any VPF. The employer pays 12%: 8.33% of wages up to ₹25,000 to the pension scheme and the rest to your PF account, plus EDLI (0.5%) and admin charges (0.5%).
Interest on the PF balance is not included. The admin minimum of ₹500 applies per establishment, not per employee, so it is left out here.
Sources · checked 22 October 2026
Questions
Frequently asked questions
Short answers, worked out with the same rules as the calculator above.
How much PF is deducted from a salary of ₹25,000?
If your basic pay plus DA is ₹25,000 a month, 12% of it, ₹3,000, is deducted as your PF. Your employer adds another ₹3,000: ₹2,083 to the pension scheme and ₹917 to your PF account.
Is PF calculated on basic salary or gross salary?
On PF wages: basic pay plus dearness allowance. Under the labour codes, if the allowances left out of wages are more than half of total pay, the excess is added back to wages, so a very low basic does not shrink PF.
Is PF compulsory on salary above ₹25,000?
Contributions are compulsory on PF wages up to ₹25,000 a month from 17 September 2026. On wages above that, contributing on the full amount is optional for both sides; employees who already contribute on higher wages do not need to cut back.
What is the maximum EPS contribution?
8.33% of wages up to ₹25,000, so ₹2,083 a month. If PF is paid on higher wages, the employer's share above that goes to the employee's PF account, not to the pension scheme.
Does the employer’s PF come out of my CTC?
Often, yes: many offers count the employer’s PF inside CTC, so it is not part of your gross salary. It is still the employer’s contribution by law and goes to your PF and pension, not to anyone else.
What is VPF?
Voluntary provident fund: extra PF you choose to pay above the compulsory 12%. Your employer does not have to match it, and it earns the same interest as EPF.