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Breakup of EPF Contribution

The concept of the structure of the Employees Provident Fund (EPF) contribution is simple to understand. However, before diving into the calculation of the breakup of EPF, let’s understand what is the meaning and purpose of EPF.

EPF is a retirement saving option, specially designed for salaried professionals and it is for a long term period. In the EPF fund, both the employee and the employer contributes-

The break-up of EPF is the following:

a. It is collected through the salary of an employee

b. 12% is the contribution of the employer and.

c. 12% is the contribution of employee i.e. 12% of basic salary

d. Total of 24% of the basic salary is contributed every month

The contributed amount gets deposited at the EPFO (Employee Provident Fund Organization). As this is a long-term investment over the working years of an individual, a good amount of corpus gets accumulated, thereby making an individual financially independent after retirement. Apart from retirement saving benefit, EPF also gives a loan facility to the individual. The monthly amount contributed towards EPF can also be used for tax deduction benefit under the prevailing income tax laws.

Explore more on Tax

Example of EPF Contribution

Now, let’s have a look at an example of EPF contribution:

Let assume the basic salary of a person is INR 20,000. So below is the breakup of EPF contribution of a salaried person will look like:

1) 12% of Employees Share in EPF i.e. 12% of 20000 = INR 2,400

2) 3.67% of Employer’s Share in EPF of 20000 = INR 734

3) 8.33% of Employer’s Share in EPS i.e. 8.33% of 20000 = INR 1,666 (Employer’s EPF contribution is EPF+EPS)

4) 0.5% of Employer’s Share in EDLIS i.e. 0.5% of 20000 = INR 100

5) 1.11% of Employer’s Administration Charges i.e. 1.11% of 20000 = INR 222

From the above, add 1 and 3, which brings the total amount of INR 4, 800 which gets deposited in EPF every month.

About PPF Calculator

The PPF (Public Provident Fund calculator) is an interactive tool which is available on an online platform. The tool helps the salaried professionals to calculate and get an understanding of the interest that is earned in a PPF scheme. The online PPF calculator helps to know the growth in investment, maturity amount, and the interest that is earned over the period of 15 years of contribution in PPF.

The PPF calculator is a very easy online tool which gives accurate details. PPF calculators can be found on many different websites. The calculations are made as the current interest rate of PPF. Below is an example of how exactly a PPF calculator works.


  • Investment in the PPF account every year: INR.1 lakh

  • Present rate of interest: 8.0%

Year Interest Rate % During the Year Deposit Interest Upto the Year Deposit Interest Balance RoI %
2019-20 8 1,00,000 8,000 1,00,000 8,000 1,08,000 8
2020-21 8 1,00,000 16,640 3,00,000 24,640 2,24,640 12.32
2021-22 8 1,00,000 25,971 3,00,000 50,611 3,50,611 16.87
2022-23 8 1,00,000 36,049 4,00,000 86,660 4,86,660 21.67
2023-24 8 1,00,000 46,933 5,00,000 1,33,593 6,33,593 26.72
2024-25 8 1,00,000 58,687 6,00,000 1,92,280 7,92,280 32.05
2025-26 8 1,00,000 71,382 7,00,000 2,63,663 9,63,663 37.67
2026-27 8 1,00,000 85,093 8,00,000 3,48,756 11,48,756 43.59
2027-28 8 1,00,000 99,900 9,00,000 4,48,656 13,48,656 49.85
2028-29 8 1,00,000 1,15,892 10,00,000 5,64,549 15,64,549 56.45
2029-30 8 1,00,000 1,33,164 11,00,000 6,97,713 17,97,713 63.43
2030-31 8 1,00,000 1,51,817 12,00,000 8,49,530 20,49,530 70.79
2031-32 8 1,00,000 1,71,962 13,00,000 10,21,492 23,21,492 78.58
2032-33 8 1,00,000 1,93,719 14,00,000 12,15,211 26,15,211 86.8
2033-34 8 1,00,000 2,17,217 15,00,000 14,32,428 29,32,428 95.5
2034-35 8 1,00,000 2,42,594 16,00,000 16,75,023 32,75,023 104.69

Types of PPF Calculators

Presently, there are 7 types of PPF calculators that help individuals to calculate 6 different types of calculations relating to PPF.

PPF fixed monthly investment calculator

The tool helps the investor to know the monthly amount payable towards the PPF contribution every month. After filing the required parameters in the online tool, within seconds the calculator will display the answer.

PPF available loan calculator

This tool helps the individual to know the loan amount eligibility from the account. The individual only needs to enter the balance amount of the account to get the answer.

PPF fixed yearly investment calculator

Similar to the monthly contribution calculator, this tool computes the PPF contribution on a yearly basis.

PPF variable yearly investment calculator

This tool requires the investor to enter details like amount deposited every year, financial year, date of opening of PPF account to know the variable yearly investment amount.

PPF Benefits Calculator:

This tool helps an individual to know the following:

  • Tax-free income from salary
  • Income Tax liability before investment
  • Income Tax liability after investment
  • Yearly tax savings and
  • Total amount of tax saving in 15 years

PPF available withdrawal calculator (Before Extension/After Extension)

Withdrawal from the PPF account is available from the 7th financial year, and is allowed only once in a year. This tool helps to calculate the permissible withdrawal amount.

PPF Maturity Calculator

This tool helps the individual to know the maturity amount from the PPF account at the end of maturity term.

Benefit of Tax Deduction

  • Tax benefits are available to the individual for making a contribution to the EPF scheme. The EPF scheme comes under the EEE (Exempt, exempt, exempt) category of investment.
  • The tax deduction is available under the provision of Section 80C of the Income Tax Act, 1961 for a monthly contribution. The limit of the tax deduction is INR 1.5 lakhs under this section.
  • There is also no tax liability on the annual interest earnings.
  • The maturity amount is also totally tax-free under this scheme.
  • There is a condition for availing the tax benefit. The individual has to contribute for at least 5 years to avail the tax benefits. Consult a tax expert to know more on EPF taxation.

FAQs on Breakup of EPF Contribution

Can the employer contribute more than 12% for PF?

No, the employer cannot contribute more than 12% to PF.

Can I increase my PF contribution?

The employee is allowed to increase his/her contribution to 100 percent of (basic + dearness allowance) of salary.

Can we reduce PF contribution?

No, PF amount once fixed cannot be reduced.

Can we withdraw employer share in PF?

The minimum age limit for withdrawal is 54 years or before one year of actual retirement, whichever comes later. The individual is allowed to withdraw 90% of PF balance amount (employer share + employee share).

How is PF calculated for the employer?

The employer has to contribute 12% of the basic salary towards EPF. The employer contribution break-up is mentioned below-

  • Employee’s Provident Fund (EPF): 3.67%
  • Employee’s Pension Scheme (EPS): 8.33%
  • Employee’s Deposit Link Insurance Scheme (EDLIS): 0.50%
  • EPF Administration charges: 1.10%
  • EDLIS Administration charges: 0.01%

How is PF calculated?

To calculate the PF accumulation amount, one can use a number of PPF calculators available online. These online calculators are simple, easy and free of cost. For calculating using an online calculator; add the investment amount and tenure of PPF in the respective column. To calculate your PPF interest, one can follow these steps: F = P[{(1+i)n-1}/i],

  • F (Maturity Amount)
  • P (Annual Instalments paid)
  • n ( No. of years or Tenure of PF)
  • i ( Rate of Interest)

Please note that the interest on PPF is compounded on a yearly basis.

Is employer contribution to PF part of CTC?

Yes, employer contribution to PF is part of the cost to company (CTC).

Is PF mandatory for contract employees?

Any firm employing more than 20 workers plus where employees are earning up to INR 15000 per month hence, an EPF account becomes mandatory.

Is PF mandatory for salary above INR 15000?

Yes, PF deduction is mandatory for salaries more than INR 15000 per month, but if the salary is less than 15000 per month, then minimum mandatory PF contribution is 12 % of the actual salary.

What is EDLI contribution in PF?

EDLI stands for Employee Deposit Linked Insurance Scheme which provides as Assurance Benefit, which includes insurance cover to be paid to the employee’s nominee on death during the working life of an employee

What is the age limit for EPF contribution?

The age limit for EPF contribution is 58 years old by the employer. However, an employee can continue to contribute towards EPF.

What is the basic salary limit for PF?

The basic salary limit for PF is INR 15000.

What is the employer contribution in PF?

The employer contribution towards PF is 12% of the basic salary.

What is the maximum limit of PF contribution?

Employees generally contribute only 12 percent of their basic salary towards the Employee Provident Fund (EPF). However, if the employee wants to contribute more than 12 percent of the basic salary, then he/she can do so. Employee contribution can be increased to 100 per cent of (basic + da) depending on his/her convenience.

What is the minimum PF contribution by employer?

The employer contributes 8.33% towards the employee’s pension scheme (EPS) and 3.67% to the employee pension fund (EPF).