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Regulatory Analysis • Pune Corporate Advisory

EPF Registration Rules in India: 20-Employee Threshold, Voluntary Registration, and ₹15,000 Wage Ceiling Breakdown

KOKJAGUAR Advisory October 11, 2026 4 Min Read

Understanding EPF Mathematical Contributions

Statutory Provident Fund contributions are calculated on the employee’s monthly basic salary plus dearness allowance:

  • Employee Contribution: 12% of basic wage deducted from payroll.
  • Employer Contribution: 12% total, bifurcated into:
    • 8.33%: Remitted to Employees' Pension Scheme (EPS) (capped at ₹1,250 on ₹15,000 wage ceiling).
    • 3.67%: Remitted directly to EPF account.
    • 0.50%: Employees' Deposit Linked Insurance (EDLI).
    • 0.50%: Administrative charges.
Got Questions?

Frequently Asked Questions

No. Employees joining a company with a basic salary exceeding ₹15,000 per month are classified as "Excluded Employees" unless they were already members of the EPF in a previous job. However, employers can mutually cap deductions at ₹1,800 (12% of ₹15,000) or deduct on full basic.

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