The Employees' Provident Fund is India's main retirement savings scheme for salaried employees, administered by the Employees' Provident Fund Organisation (EPFO). The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 is now subsumed into the Code on Social Security, 2020, but the EPF, EPS and EDLI schemes and EPFO's systems continue to run; follow EPFO circulars for any changes made under the Code.
Who is covered
- Establishments: generally those employing 20 or more persons. Smaller employers can opt in voluntarily.
- Employees: mandatory for employees whose PF wages (basic plus dearness allowance, under the earlier definition) are up to ₹15,000 a month when they join. Employees above the ceiling can be enrolled if they are not already "excluded employees".
- UAN: each member has a Universal Account Number that follows them across employers. Collect it at joining rather than generating a duplicate.
How contributions split
| Component | Paid by | Rate |
|---|---|---|
| EPF (employee share) | Employee | 12% of PF wages |
| EPS (pension) | Employer | 8.33% of PF wages up to ₹15,000 (max ₹1,250/month) |
| EPF (employer balance) | Employer | 12% minus the EPS amount |
| EDLI (insurance) | Employer | 0.5% of wages up to ₹15,000 |
| Administrative charges | Employer | 0.5% of PF wages (subject to EPFO minimums) |
A reduced 10% rate applies to certain notified classes of establishment; check EPFO's notification if you think you qualify.
What "PF wages" means after the Labour Codes
The Code on Social Security uses the uniform definition of "wages" from the Labour Codes: if excluded allowances exceed 50% of total remuneration, the excess is treated as wages. Salary structures built on a low basic and large allowances may see a higher PF base. Model the effect before restructuring and follow EPFO guidance as it is issued. See Labour Codes status.
Monthly process and deadline
- Calculate contributions from the month's actual wages paid.
- Upload the Electronic Challan-cum-Return (ECR) on the EPFO employer portal.
- Pay the challan by the 15th of the following month. Late payment attracts interest and damages.
- Mark joiners and leavers with correct dates so members can transfer and withdraw.
Common errors
- Creating a new UAN for a joiner who already has one.
- Wrong date of exit, which blocks the member's withdrawal or transfer.
- Computing EPS on full wages instead of the ₹15,000 ceiling (or vice versa for members with higher-wage pension options).
- Name or date-of-birth mismatches against Aadhaar, which stall KYC.
Accurate joining and exit dates are an HR record problem before they are a payroll problem — they should come from one employee record, not a spreadsheet copy.
Sources and review date
Facts in this article were checked against the official sources below as of 8 October 2026. Rates, wage ceilings, due dates and forms change by notification, so confirm on the source before acting.
- EPFO (epfindia.gov.in)
- Labour Codes page, Ministry of Labour & Employment
- India Code (indiacode.nic.in) — official text of central Acts
This is a general explainer written by the Kyrospect editorial team, not legal, tax or payroll advice. Applicability depends on your state, headcount, establishment type and contracts — confirm with a qualified professional or the authority concerned.
Where Kyrospect fits: Kyrospect HRMS holds employee records and Tracking records shift hours on the same identity. It does not calculate or file PF, ESI, professional tax, TDS or gratuity today — payroll is planned and gated on statutory compliance work. See the roadmap for current status.