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).

EPF & EPS Calculator India | PF Contribution & Pension Estimator | SKM Laws

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.

Legal Advice (WhatsApp)

Notice: This calculator provides an indicative statutory estimate under the EPF Scheme, 1952 and EPS, 1995. Actual pension eligibility, compounding EPF interest rates, and final settlement depend on official EPFO member records and annual government notifications.

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.