EPF vs EPS vs EDLI: Monthly amounts to be deducted

The Indian government has raised the Employees’ Provident Fund (EPF) wage ceiling from Rs 15,000 to Rs 25,000, expanding the reach of mandatory social security schemes such as EPF, EPS, and EDLI. This change, effective from September 17, 2026, means that more employees now fall under the mandatory coverage threshold.

Despite the update, many are still uncertain about the monthly contributions they and their employers must make to EPF, EPS, and EDLI. The government has provided clarity through a Frequently Asked Question (FAQ) on the Employees’ Provident Fund Organisation (EPFO) website, detailing the contributions for various salary brackets.

The monthly contributions from both employee and employer to these schemes are determined by the employee's basic salary, inclusive of Dearness Allowance (DA). The EPF contribution rate is 12%, while the EPS contribution is 8.33% from the employer, and 3.67% from the employee. EDLI, on the other hand, has a uniform contribution rate of 0.5% from both parties.

Here’s how the contributions break down for different monthly basic salaries:

- For a salary of Rs 10,000, the employee’s EPF contribution is Rs 1,200, with the employer contributing Rs 550, totaling Rs 1,750. EDLI contribution is Rs 50 each.

- For Rs 15,000, the employee’s EPF contribution is Rs 1,800, and the employer’s EPS contribution is Rs 1,250, summing up to Rs 3,050. EDLI contributions remain at Rs 75 each.

- At Rs 20,000, the employee’s EPF contribution rises to Rs 2,400, while the employer’s EPS contribution is Rs 1,666, resulting in a total of Rs 4,066. Both parties contribute Rs 100 towards EDLI.

- With a salary of Rs 25,000, the employee’s EPF contribution is Rs 3,000, and the employer’s EPS contribution increases to Rs 2,083, totaling Rs 5,083. The EDLI contribution is Rs 125 each.

- For salaries above Rs 25,000, such as Rs 35,000, the employee’s EPF contribution stands at Rs 3,000, with the employer’s contribution to EPF at 3.67%, amounting to Rs 3,000. The EPS contribution from the employer is zero, and the EDLI contribution remains at Rs 125 each.

These contributions are deducted from the employee's salary and credited towards their EPF, EPS, and EDLI accounts, ensuring they remain covered under these essential social security schemes.