Why is PF capped at ₹15,000?

The EPFO wage ceiling is ₹15,000 for standard contributions. Employers can opt to contribute on higher basic, but this is not mandatory.

Is the ₹1,250 EPS amount always fixed?

For EPF wages of ₹15,000 or more, yes — EPS is capped at ₹1,250. For lower wages, 8.33% of actual EPF wages is used, rounded to the nearest rupee.

What happens if my basic is above ₹15,000?

Unless your employer has opted for higher voluntary contributions, PF is calculated only on ₹15,000. This calculator assumes the standard ceiling.

PF Calculator India — Employee, Employer, EPS Split

Calculate employee PF, employer PF, EPS and EPF contribution for any basic salary. Shows the ₹15,000 ceiling and the ₹1,250 EPS cap.

PF is 12% of EPF wages from both employee and employer. The employer's 12% is split: 8.33% goes to EPS (capped at ₹1,250) and the rest stays in EPF. EPS wages are capped at ₹15,000.

Monthly basic salary

Employee Provident Fund (EPF) is a retirement benefit where both the employee and employer contribute 12% of the employee's basic wages each month. The employer contribution is further split between the Employees' Pension Scheme (EPS) and the employer's EPF account.

The standard wage ceiling for EPF is ₹15,000. Employers can choose to contribute on actual basic above this ceiling, but most do not. This calculator uses the standard ceiling, which is the common case for employees in India.

How the calculation works

EPF wages: the lower of basic salary and the ₹15,000 ceiling.
Employee contribution:12% of EPF wages goes to the employee's EPF account.
Employer contribution: another 12% of EPF wages.
EPS share: 8.33% of EPF wages, but the EPS pension is capped at ₹1,250 per month because EPS wages are capped at ₹15,000.
EPF share:the balance of the employer's 12% stays in EPF after the EPS cap.

Worked example

For a basic salary of ₹15,000, EPF wages are ₹15,000. Both sides contribute 12% = ₹1,800. The employer's EPS share is 8.33% of ₹15,000 = ₹1,250 (rounded), so the employer's EPF share is ₹1,800 − ₹1,250 = ₹550.

Frequently asked questions

Why is PF capped at ₹15,000?: The EPFO wage ceiling is ₹15,000 for standard contributions. Employers can opt to contribute on higher basic, but this is not mandatory.
Is the ₹1,250 EPS amount always fixed?: For EPF wages of ₹15,000 or more, yes — EPS is capped at ₹1,250. For lower wages, 8.33% of actual EPF wages is used, rounded to the nearest rupee.
What happens if my basic is above ₹15,000?: Unless your employer has opted for higher voluntary contributions, PF is calculated only on ₹15,000. This calculator assumes the standard ceiling.