See exactly how much goes to PF each month: the employee's deduction, the employer's EPF share and the pension (EPS) part.
The Employees' Provident Fund (EPF) is a retirement saving that both the employee and the employer pay into every month. Contributions are worked out on PF wages — Basic pay plus Dearness Allowance — not on the full salary.
The employee pays 12% of PF wages, deducted from salary. The employer pays another 12%, split in two: 8.33% of wages up to ₹25,000 (at most ₹2,083) goes to the Employees' Pension Scheme (EPS), and the remaining 3.67% — plus anything above the pension cap — goes into the employee's EPF account along with their own 12%.
For example, with Basic + DA of ₹30,000 and PF wages capped at ₹25,000: the employee pays ₹3,000, the employer pays ₹3,000 (₹2,083 to EPS and ₹917 to EPF), and ₹3,917 a month builds up in the employee's EPF account.
New from 17 September 2026: the wage ceiling went up from ₹15,000 to ₹25,000, so the maximum employee PF rose from ₹1,800 to ₹3,000. Read what the ₹25,000 PF ceiling means, including the September split-month calculation.
In a payslip the employee's share appears as a deduction, while the employer's share is part of the cost to company. SetuWork payroll works both out for every employee from their Basic, shows the employer share against CTC, and puts the deduction on the payslip — or make a single payslip with the free payslip generator. To see what a CTC means in take-home pay after PF, Professional Tax and income tax, use the in-hand salary calculator.
The employee contributes 12% of PF wages (Basic plus Dearness Allowance) each month. The employer also contributes 12%: 8.33% of wages up to ₹25,000 — at most ₹2,083 a month — goes to the Employees' Pension Scheme (EPS), and the rest goes to the employee's EPF account.
From 17 September 2026, PF wages are capped at ₹25,000 a month (up from ₹15,000), so the employee's statutory contribution is at most ₹3,000 (up from ₹1,800). Employers and employees can choose to contribute on the full wage instead — untick “Cap PF wages at ₹25,000” to see that.
The pension share is 8.33% of wages up to the ₹25,000 ceiling, which is ₹2,082.50, rounded to ₹2,083 (it was ₹1,250 on the old ₹15,000 ceiling). Anything the employer contributes above that goes to EPF.
No. Only the employee's 12% is deducted from salary. The employer's contribution is an extra cost to the company and is part of the employee's CTC.
It follows the contribution split as commonly applied and is meant as a quick estimate. Rules can differ for particular cases, so confirm with the EPFO or your payroll consultant for official figures. Administrative and EDLI charges paid by the employer are not included.
Free for teams up to 10 people — no card required.