How do the current PF wage ceiling, 12% employee contribution and employer EPF/EPS split affect a monthly payslip? Which salary figure should go into the calculator?
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Qaskme editorial answer
For a covered member on the usual 12% rate and ₹25,000 PF wages, the employee EPF deduction is ₹3,000 per full month. For an eligible EPS member, the employer’s ₹3,000 contribution is split into up to ₹2,083 EPS and ₹917 EPF. EPS is taken from the employer share; it is not a second employee deduction.
At ₹20,000 PF wages, the employee contributes ₹2,400. At ₹40,000 PF wages, capped contribution remains ₹3,000; an agreed full-wage contribution at 12% is ₹4,800. Confirm the applicable PF wage base, pension eligibility and contribution policy with payroll. CTC and gross salary should not automatically be used as PF wages.
The Labour Ministry’s September 2026 briefing confirms the revised ceiling and pension limit. Use the PF calculator or read the full PF guide. This is an estimate for a full month after the change; special pension arrangements and interest are excluded.