Government clarifies employee and employer contributions for EPF, EPS and EDLI schemes

The EPFO has published a Frequently Asked Question to clear confusion over monthly contributions to the Employees’ Provident Fund (EPF), Employees’ Pension Scheme (EPS) and the Employees’ Deposit Linked Insurance (EDLI). It uses four reference basic salaries - Rs 15,000, Rs 20,000, Rs 25,000 and Rs 35,000 - to illustrate the amounts payable by both employee and employer. Employees whose wages do not exceed the Rs 25,000 ceiling, effective from September 17 2026, qualify for EPS membership.

EPF contributions are calculated at 12% of PF wages, which generally include basic pay plus dearness allowance; for example, a Rs 20,000 salary leads to a Rs 2,400 employee contribution. The FAQ also specifies the employer’s share for each scheme and salary level, helping workers and firms understand their obligations under the revised wage ceiling.