The Employees’ Provident Fund (EPF) is one of the most important social security schemes in India, ensuring financial stability for employees after retirement. Both employers and employees are required to contribute a percentage of the employee’s wages each month.

PF Contribution Rates in 2025

For the year 2025, the contribution structure remains as follows:

Contribution Type	Rate	Paid By
Employee PF Contribution	12% of Basic + DA	Employee
Employer PF Contribution	12% of Basic + DA (split between PF & Pension)	Employer
Admin Charges	0.5% of wages (minimum ₹500)	Employer
EDLI Contribution	0.5% of wages	Employer

How Employer Contribution is Split

• 8.33% of wages goes to the Employees’ Pension Scheme (EPS)
• Remaining balance goes into the employee’s EPF account.

Example Calculation

If an employee’s Basic + DA = ₹15,000 per month:

• Employee Contribution = 12% × ₹15,000 = ₹1,800
• Employer Contribution = 12% × ₹15,000 = ₹1,800
  • EPS (8.33%) = ₹1,250
  • EPF (Balance) = ₹550
• Total Contribution to EPF/EPS = ₹3,600 per month

Key Notes for Employers

• Employees earning under ₹15,000 per month must be mandatorily covered.
• For higher salaried employees, contribution is usually on full Basic + DA unless restricted by employer policy.
• Delayed contributions attract interest @12% per annum and damages/penalties.

At Sahaj Consultancy, we ensure accurate calculation, timely challan payments, and compliance with PF laws to save you from penalties.