Provident Fund (PF)

The EPFO of India offers the Employees Provident Fund as a small saving scheme to both Indian workers and international workers. The method allows the accumulation of funds and accrual of interest on the accumulated funds. The funds thus collected comprise contributions from both employees and their employers.

Contributions from employees, as well as employers, add to the EPF. However, the commonly thought is that the entire portion of contribution from an employer goes towards something other than the Employees Provident Fund. Moreover, it is essential to understand the allocation of funds to different components.

Provident Fund Calculator

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PF Contribution

Provident Fund Contribution from both employee & employer

  • Contribution by an employee: Contribution towards EPF is deducted from employee’s salary i.e., 12% of basic salary and PF applicable allowances of the employee
  • Contribution by an employer: The contribution made by the employer is 13% of the basic salary and PF applicable allowances of the employee. However this 13% is further subdivided into:
    • 3.67% of contribution towards Employees’ Provident Fund
    • 0.5% of contribution towards EPF Administration Charges
    • 0.5% of contribution towards EDLI Administration Charges
    • 8.33% of contribution towards Employees’ Pension Scheme
Employees Provident Fund scheme will be calculated upto INR 15,000 of the basic salary and PF applicable allowances. If the basic is above INR 15,000 PF will be constant. The employee with a monthly salary less than or equal to INR 15,000 will have to contribute mandatory towards EPF
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