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All-in-one HR platform · v2.0
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Provident fund is 12% on each side, but the employer's 12% splits between provident fund and pension, and the split is capped even when the contribution is not.
Most provident fund confusion is about the employer's share rather than the employee's. The employee contributes a flat 12%. The employer contributes 12% as well, but 8.33% of it is diverted to the Employees' Pension Scheme, and that pension share is capped at the statutory wage ceiling even where the employer has chosen to contribute on full basic.
This calculator shows both sides separately, the split within the employer share, and what accumulates in a year before interest.
Enter your figures, then press Calculate
Your 3 inputs become a full breakdown, with every step of the working shown beneath the headline figures.
The wage base first, because that is where PF calculations actually go wrong, and then the split between the employee's contribution and the employer's two.
Employee = 12% × PF base · Employer = 12% × PF base, of which EPS = 8.33% × min(PF base, ₹15,000)
The base is basic salary plus dearness allowance. Where the employer applies the statutory wage ceiling, the base is the lower of that figure and ₹15,000.
A flat 12% of the PF base. An employee may add a voluntary contribution above this; the employer's share is unaffected by it.
8.33% of the base, capped at the ₹15,000 ceiling regardless of the employer's ceiling choice, goes to the Employees' Pension Scheme. The remainder goes to provident fund.
The monthly total is the sum of both contributions. Interest is credited by EPFO at a rate declared each year and is not included here.
What this does not include
Asked often enough about this calculation to be worth answering beside it.
Because the pension share is computed on the PF base capped at the ₹15,000 statutory ceiling, even when the employer has chosen to contribute on full basic. Once basic passes ₹15,000 the EPS figure holds steady and the additional employer contribution goes to provident fund instead.
An employee may contribute more than the statutory 12% of their PF base. The employer's contribution does not increase to match. It is included here as a separate line so the effect on take-home is visible.
No. EPFO declares an interest rate each year, and applying an assumed rate to future balances would be a projection rather than a calculation. The annual figure shown is contributions only.
Enter monthly basic plus dearness allowance, not gross. Where the ₹15,000 wage ceiling is applied, the PF base is the lower of that figure and ₹15,000.
8.33% of the PF base, capped at the ₹15,000 ceiling, goes to the Employees' Pension Scheme. The remainder of the employer's 12% goes to provident fund.
Contributions on both sides are computed on full basic instead of the capped figure. The pension share stays capped at the ceiling either way.
The calculator totals the employee and employer contributions each month and multiplies by twelve. That annual figure is contributions only, before any interest credited by EPFO.
The calculator does not determine that. Applicability of the scheme to a particular establishment and employee is a question for your advisers or the EPFO.
A calculator applies a rule to figures you type in. A payroll run applies it to your actual employee record, your locations and your verified declarations, which is where Professional Tax, LWF and TDS also resolve.
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