What it means
EPF applies to establishments with 20 or more employees. Membership is compulsory for employees whose PF wages (basic, DA and retaining allowance) are up to ₹25,000 a month, the ceiling from 17 Sep 2026 (₹15,000 before); others may join with the employer’s consent. The employee pays 12% of wages. The employer also pays 12%, split into 8.33% for the pension scheme (EPS, on wages up to ₹25,000, so at most ₹2,083) and the rest to EPF, plus 0.5% for EDLI insurance and 0.5% admin charges. Contributions are paid by the 15th of the next month with an electronic challan cum return (ECR), against each employee’s UAN.
Example
Priya Nair earns basic + DA of ₹20,000 in October 2026, within the ₹25,000 ceiling, so PF is on her full wages (EPFO’s own figures for ₹20,000):
| Part | Amount |
|---|---|
| Employee share, 12% | ₹2,400 |
| Employer to EPS, 8.33% of ₹20,000 | ₹1,666 |
| Employer to EPF, 3.67% | ₹734 |
| Total into her PF and pension each month | ₹4,800 |
Kaveri also pays 0.5% EDLI (₹100) and 0.5% admin charges (₹100, with a minimum of ₹500 a month for the establishment). Under the old ₹15,000 ceiling her share could be held to ₹1,800 and EPS to ₹1,250.
Common mistakes
- Paying PF only on basic when DA is also part of wages.
- Missing the 15th; damages and interest apply.
- Not linking a new joiner’s existing UAN, which splits their account.
In MyRecords
The pay run works out employee and employer PF, the monthly statutory summary splits EPF, EPS and EDLI, and the ECR text file downloads ready to upload on the EPFO portal. UAN prints on the Form V wage slip.