How PF contributions are split
You and your employer each contribute 12% of your PF wages (basic pay + DA, and any retaining allowance). Your 12% goes entirely into your EPF account. The employer’s 12% is split:
- 8.33% to the Employees’ Pension Scheme (EPS), on wages up to the ceiling only. At the new ₹25,000 ceiling that is at most about ₹2,083 a month (it was ₹1,250 at the old ₹15,000 ceiling). This money funds a monthly pension, not your EPF balance.
- The rest to your EPF account: 3.67% of wages up to the ceiling, plus the full 12% on anything above it if your employer contributes on full pay.
Employers also pay small charges for insurance (EDLI) and administration. These are not credited to you, so the calculator leaves them out.
The ₹25,000 wage ceiling
The government raised the EPF wage ceiling from ₹15,000 to ₹25,000 a month by a notification dated 17 September 2026, the first change since 2014. Contributions are worked out on ₹25,000 or your actual wages, whichever is lower, unless you and your employer choose to contribute on higher pay. Untick the box above if your employer contributes on your full basic pay.
Some members, for example people who first joined EPF on high wages after September 2014, are not in the pension scheme. For them the whole employer share goes to EPF; tick the box if your passbook shows no EPS amount.
How interest is added
EPFO declares an interest rate for each financial year. For 2025-26 it is 8.25%. Interest is worked out on the balance at the end of each month and credited to your account once a year. The projection uses the rate you enter for every future year and raises your pay by the yearly increase you choose. Interest on your own contributions above ₹2.5 lakh a year is taxable, and the calculator does not take that tax off.
Sources
- PIB (Ministry of Labour & Employment): EPF wage ceiling raised to ₹25,000
- EPFO: Employees’ Provident Fund Organisation
- ThePrint: government ratifies 8.25% EPF interest for 2025-26
- Ministry of Labour & Employment (labour codes)
Figures last checked against these sources on 4 November 2026. This tool gives an estimate for planning, not tax, legal or financial advice.