How PF is calculated
Both employee and employer contribute 12% of PF wages. The employer's 12% is split: 8.33% of wages up to the ceiling goes to the Employees' Pension Scheme (EPS), the rest to the employee's EPF account. The employer also pays EDLI (0.5%) and admin charges (0.5%).
The PF wage ceiling is ₹25,000 a month from 17 September 2026 (₹15,000 before). Read what changed.
PF wages under the Labour Codes
PF wages are basic plus DA. Since the Labour Codes, if allowances are more than half of total pay, the excess is added to PF wages. The 50% wages rule explained.
Frequently asked questions
What is the maximum PF deduction a month?
When PF is capped at the wage ceiling, 12% of ₹25,000 = ₹3,000 a month from the employee (from 17 September 2026).
How much goes to EPS?
8.33% of wages up to the ceiling. That is at most ₹2,083 a month on the ₹25,000 ceiling.