What percentage of salary goes to EPF?

What the Law Says

The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 governs EPF contributions in India. It mandates fixed percentage contributions from both employees and employers on eligible wages.

Under the EPF & MP Act, 1952, every employee earning up to ₹15,000 per month (basic + dearness allowance) must be enrolled in the EPF scheme. Both employee and employer contribute 12% of this wage base.

Of the employer’s 12% contribution, 3.67% goes to the Employee Provident Fund (EPF) account and 8.33% goes to the Employee Pension Scheme (EPS), subject to a maximum EPS contribution of ₹1,250 per month (i.e., 8.33% of ₹15,000).

For employees earning more than ₹15,000, contributions are voluntary unless the employer chooses to extend coverage — but the statutory ceiling remains ₹15,000 for mandatory calculations.

Statutory Text

The employee shall contribute… twelve per cent of his basic wages, dearness allowance and retaining allowance, if any…

— Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, s. 6 — Contributions

Statutory Text

The employer shall contribute… twelve per cent of the basic wages, dearness allowance and retaining allowance…

— Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, s. 6 — Contributions

Sources