How EPF is calculated

The Employees’ Provident Fund (EPF) is a mandatory retirement-savings scheme run by the EPFO. Your PF contribution is calculated on your basic salary plus dearness allowance (DA). The employee contributes 12% of basic + DA each month, and the employer matches it with another 12%. The combined balance earns interest at a rate declared annually by the EPFO (around 8.25% in recent years) and is paid out, tax-free in most cases, at retirement or on exit.

This EPF calculator works out the monthly and yearly provident fund contributions from both sides and shows how the employer’s share is split between EPF and the pension (EPS) component, so you can see exactly how your retirement corpus is being built.

Employer vs employee PF contribution & EPS

While the employee’s full 12% goes into the EPF account, the employer’s 12% is divided. Of the employer share, 8.33% (calculated on a statutory wage ceiling of ₹15,000) is diverted to the Employees’ Pension Scheme (EPS), and the remaining 3.67% goes into the EPF account. This is why your EPF passbook shows the employer’s EPF credit as smaller than your own.

Many employers restrict PF to the ₹15,000 wage ceiling, while others calculate it on actual basic + DA. Use the calculator’s ceiling toggle to compare both methods and see the effect on your monthly provident fund contribution.

For CA firms and payroll compliance

PF deductions must be deposited with the EPFO by the 15th of the following month, along with the ECR return. CA firms and payroll teams can use this provident fund calculator to verify contribution splits, reconcile ECR challans and advise clients on PF wage definitions. Hidesc helps practices track EPF, ESI and TDS deadlines and manage payroll compliance across all their clients.

PF contribution split — example on ₹15,000 basic + DA