Is Employee's share in PF equal to Employer's share

Employees Provident Fund (EPF) is a government-managed savings programme for employees who can contribute a portion of their pension fund each month. These monthly savings accumulate and are easily accessible as a lump sum amount upon retirement or termination of employment. Since provident fund money is a significant portion of your savings, it can quickly grow your retirement corpus.

PF is not the only place your employer can add to your retirement. Under Corporate NPS, the employer's contribution is deductible under Section 80CCD(2) — over and above the ₹1.5 lakh 80C limit that your own PF share sits in.

Update — the EPF, EPS and EDLI Schemes were replaced in 2026. The Code on Social Security, 2020 came into force on 21 November 2025, and from 29 June 2026 the EPF Scheme 2026, EPS 2026 and EDLI Scheme 2026 replaced the 1952, 1995 and 1976 Schemes. The rate is still 12% and the wage ceiling is still ₹15,000 a month (S.O. 2702(E), 29 May 2026) — the ₹21,000 and ₹25,000 figures reported in the press have not been notified. Two things changed for readers: contributions are now calculated on "wages" as defined in section 2(88) of the Code, which is wider than "basic + DA"; and EPS is 8.33% of wages only up to the ceiling, at most ₹1,250 a month — someone whose wages already exceed the ceiling when they first join does not enter EPS at all, so their employer's entire 12% goes to EPF. (Position as of September 2026.)

Employee’s contribution towards EPF

Every month, the employer deducts 12% of the employee's salary (basic + dearness allowance) as an EPF contribution. This entire contribution is deposited into the employee's EPF account.

Employer’s contribution towards EPF

Likewise, the employer contributes 12% of the employee's salary to EPF. However, the employer's contribution is divided into the following categories.

EPF 3.67% EPS 8.33% Employees Deposit Link Insurance Scheme (EDLIS) 0.5%

This scheme aims to provide an individual with a sufficient retirement corpus. It instils the habit of saving money in salaried employees. Both the employer and the employee have made monetary contributions to the fund. Every month, they must contribute 12% of the employee's basic salary (Basic + Dearness allowance) to this fund. When a person retires, they receive the entire contribution (from both the employee and the employer) as a lump sum with interest. EPFO determines the rate of return on investment. In addition, the interest earned is tax-free.

How to calculate EPF contribution?

This amount is calculated each month. Assume your basic salary is Rs. 25,000 per month, including dearness allowance. Your EPF contribution is 12% of Rs. 25,000, or Rs. 3,000 per month, and your employer also contributes 12%, another Rs. 3,000.

The employer's Rs. 3,000 is then split, and this is where most calculations go wrong. The pension share (EPS) is capped at a wage ceiling of Rs. 15,000, so it is 8.33% of Rs. 15,000 — Rs. 1,250 — not 8.33% of your actual salary. Everything left over goes to EPF, so your employer's EPF share is Rs. 3,000 minus Rs. 1,250, or Rs. 1,750 per month.

The familiar 3.67% / 8.33% split only holds if your basic is at or below Rs. 15,000. Above the ceiling, the more you earn the larger the share that goes to EPF rather than to pension. (Wage ceiling as of September 2026: Rs. 15,000, notified by S.O. 2702(E) dated 29 May 2026 under the Code on Social Security, 2020.)

How to check EPF account balance?

Employees whose EPF account is managed by the Employees' Provident Fund Organisation (EPFO) have four options for checking the balance: the Umang App, the EPFO Portal, SMS, or a missed call. However, if the EPF account is managed by the employer through a trust, the employee must request the EPF account statement from their employer.

How can PensionBox help?

PensionBox allows you to keep track of how your funds are allocated towards EPF. Through our app, you can easily track your, employer and employee contribution to EPF, interest rates, and other factors.

We help you calculate how much more you need to save to reach your ideal retirement age.

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