PF contribution calculator
Work out the employee and employer split, the pension cap, EDLI and admin charges — for one salary, in a few seconds.
PF contribution calculator
Employee and employer provident fund contributions, including the pension split, EDLI and admin charges.
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How the PF contribution splits
The employee contributes 12% of PF wages (basic + DA). The employer contributes 12% as well, but that share is split:
- 8.33% to the pension scheme (EPS), capped at ₹15,000 of wages — so a maximum of ₹1,250 a month
- The balance to the provident fund account
- Plus EDLI at 0.5% and administrative charges at 0.5%
The ceiling is a policy decision
PF is statutorily required on wages up to ₹15,000. Above that, contributing is optional — some employers restrict PF to the ceiling, others contribute on full wages. Both are legitimate.
What is not workable is switching mid-year. It creates arrears and a reconciliation nobody can explain later, and it is one of the most common findings in a PF inspection.
Who must register
Establishments with 20 or more employees generally must register, and voluntary registration is possible below that. Once registered, coverage continues even if headcount later falls.
A worked example
Take PF wages of ₹15,000 — basic plus dearness allowance.
The employee contributes 12%, so ₹1,800. The employer also contributes 12%, but that share is split: 8.33% goes to the pension scheme, capped at ₹15,000 of wages, giving ₹1,250; the remaining ₹550 goes to the provident fund account. On top of that the employer pays EDLI and administrative charges.
The employee's own contribution is not split. It goes entirely to the provident fund account.
Above the ceiling, it becomes a policy question
Contribution is mandatory up to the statutory wage ceiling. Above it, whether you contribute at all — and on what — is a decision your company makes.
It is a legitimate decision either way. What causes trouble is changing it mid-year, or applying it to some employees and not others without a defensible reason. Both produce arrears that nobody can explain afterwards, and both are visible in the ECR.
Which components count as PF wages
Basic and dearness allowance at minimum. Following the Supreme Court's reasoning on the point, allowances that are paid universally and are not genuinely variable are difficult to exclude — splitting pay into allowances specifically to reduce PF wages is the arrangement that reasoning was addressing.
PF contribution calculator FAQs
Is the ₹15,000 ceiling on basic or on gross?
On PF wages — basic plus dearness allowance — not on gross salary. Applying the ceiling to gross understates the contribution for most structures.
Why is the employer's contribution split?
Because 8.33% of it funds the pension scheme rather than the provident fund account, and that portion is capped at ₹15,000 of wages regardless of actual salary. Above that wage level the pension share stays at ₹1,250 and the balance grows.
Do we have to contribute above the ceiling?
No. Contribution is mandatory to the ceiling; above it, it is your policy. Whatever you choose, apply it consistently across comparable employees and do not change it mid-year.
Does this calculator produce the ECR?
No — it is a single-employee estimate. Klok computes the split for every employee on every run and generates the ECR file itself.
Why does the employer contribution not match the employee one?
Because part of the employer share is diverted to the pension component rather than the provident fund account. The totals match; the split does not, and employees who compare the two figures on a statement usually think something is wrong.
Should we calculate on actual basic or the wage ceiling?
That depends on whether you have chosen to restrict contribution to the statutory ceiling or contribute on full wages. Both are defensible; what is not defensible is switching between them for different employees at the same grade without a policy.
Does this include the administrative charges?
Employer cost is more than the contribution — administrative charges sit on top. Budget from the total employer outflow, not from the contribution line alone, or your annual provision will run short.
An employee wants to contribute more than the statutory minimum.
Voluntary contribution above the statutory share is allowed and is deducted from the employee. The employer is not obliged to match it, and quietly matching it for one person sets a precedent you will be asked about.
Stop calculating this one employee at a time
Klok applies the pension cap, EDLI and admin charges on every run and produces the ECR file for filing — the same numbers on the payslip and in the return.