What is the statutory EPF contribution rate for employee and employer?

Under Section 6 of the EPF & MP Act 1952, the employee contributes 12.00% to EPF Account 1. The employer contributes matching 12.00%, split into 8.33% EPS Account 10 (max ₹1,250/month) and 3.67% EPF Account 1, plus 0.50% EDLI life insurance (Account 21, max ₹75/month).

What is the statutory wage ceiling for EPF and EPS contributions?

Effective 1st September 2014 via Notification G.S.R. 609(E), the statutory wage ceiling is ₹15,000 per month (previously ₹6,500/month).

Can an employee and employer contribute on actual higher salary above ₹15,000?

Yes. Under Paragraph 26(6) of the EPF Scheme 1952, a joint declaration allows contribution on actual higher wages. However, the employer's EPS allocation remains capped at ₹1,250/month.

How is the monthly EPS pension calculated upon retirement?

Under Paragraph 12 of EPS 1995, monthly pension is (Pensionable Salary × Pensionable Service) ÷ 70, subject to minimum ₹1,000/month under S.O. 2292(E).

Salary & PF Contribution Details

Statutory computation under Section 6 & EPF Scheme, 1952

Monthly Basic Salary (₹)Mandatory

₹

Employee's monthly basic pay forming the core component of PF wages.

Dearness Allowance (DA) (₹)If any

₹

Retaining Allowance (₹)If any

₹

Total Eligible PF Wage Base:

₹15,000 / mo

Statutory Contribution Summary

EPF, EPS & EDLI Outflow Breakdown

EPF + EPS-95 Active

Employee Monthly Deduction

₹1,800

12% EPF (₹1,800)

Employer Monthly Contribution

₹1,875

EPS: ₹1,250 | EPF: ₹550 | EDLI: ₹75

Total Combined Monthly

₹3,675

Annual Outflow: ₹44,100

Detailed EPFO Account Breakdown

Employee EPF Share (Account No. 1 — 12%)

₹1,800

Employer EPS Share (Account No. 10 — 8.33% EPS)

₹1,250

Employer EPF Balance (Account No. 1 — 3.67% or 12%)

₹550

Employer EDLI Insurance (Account No. 21 — 0.50% max ₹75)

₹75

Indicative EPS Monthly Pension Estimate

15 Yrs Service

₹3,214 / mo

Indicative member's monthly pension computed as (₹15,000 × 15 yrs) / 70 = ₹3,214/mo (subject to minimum ₹1,000/mo). Actual pension depends on 60-month average pay preceding retirement and official EPFO service records.

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EPF & EPS Statutory Contribution Report

Statutory Computation under EPF & MP Act, 1952 • Section 6

Combined Monthly Outflow

₹3,675

Total Employee Deduction

₹1,800/mo

Total Employer Cost

₹1,875/mo

Combined Annual Outflow

₹44,100

Input Parameters & Statutory Assumptions

Governing StatuteEPF & MP Act, 1952

Monthly Eligible PF Wage₹15,000

EPS-95 Scheme StatusEPF + EPS-95 Active

Employee Deduction Rate12%

1. Statutory Contribution & Deduction Breakdown

Contribution Head / Component	Statutory Rate (%)	Monthly Outflow (₹)
Employee EPF (12%)	12% of PF Wage Base	₹1,800
Employer EPS (Pension Fund)	8.33% (Capped at ₹1,250)	₹1,250
Employer EPF Balance	3.67% of PF Wage Base	₹550
Employer EDLI Insurance (0.50%)	0.50% (Capped at ₹75)	₹75
Total Combined Monthly Outflow	EPFO Statutory Remittance	₹3,675

Statutory References & Legal Context

• Under Section 6 of EPF & MP Act, 1952, employee contribution is 12% of Basic + DA, matched by employer.

• Employer 12% is split into 8.33% to EPS-95 (capped at ₹1,250 on ₹15,000 ceiling) and 3.67% to EPF.

• EDLI insurance levy of 0.50% applies on the wage base (capped at ₹75/month).

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Statutory Legal Disclaimer • SKM Laws And Associates: Disclaimer: This calculator is provided for general informational and estimation purposes only. Results are based on the information entered and the rules/formulas implemented in the tool and should not be treated as a substitute for professional tax, legal, accounting or financial advice. Applicable law, rates, notifications, circulars and facts may change. Users should independently verify the result before relying upon it for any filing, payment, compliance or decision. SKM Laws & Associates does not warrant that the calculated result will be accepted by any statutory authority in every case.

Statutory Framework & Rules

4 Core Pillars of EPF, EPS & EDLI Statutory Law

12% + 12% Statutory Structure (Sec 6)

Employee 12% | Employer 12%

Under Section 6, employee's 12% goes fully to EPF Account 1. Employer's 12% is split into 8.33% EPS Account 10 (capped at ₹1,250) and 3.67% EPF Account 1.

₹15,000 Statutory Wage Ceiling

G.S.R. 609(E) w.e.f. 01-09-2014

Mandatory PF applies up to ₹15,000/month limit (₹1,800/mo). For higher salaries, joint declaration under Para 26(6) enables contribution on actual pay.

EDLI Life Insurance Cover (Account 21)

0.50% (max ₹75/mo) — ₹7 Lakhs Cover

Employer-funded 0.50% EDLI contribution provides statutory life insurance coverage up to ₹7 Lakhs to the nominee in case of death during service.

EPS Pension Determination (Para 12)

(Salary × Service) ÷ 70 (Min ₹1,000)

Upon completing 10 years contributory service, monthly pension is payable at age 58. Pensionable salary is capped at ₹15,000 with a ₹1,000/month floor.