EPF 12/12 · EPS 8.33 · EDLI 0.5 · ESI 0.75/3.25

PF & ESI — the statutory lines

Two deductions every small employer gets wrong at least once. Enter basic and gross; see the employee line, the employer line and where the money goes.

The rules this tool applies

• EPF applies to establishments with 20+ employees (voluntary below); every employee with basic + DA up to ₹15,000 must be enrolled — above that, those who were never members may opt out.
• Employee 12% of basic + DA (capped at ₹15,000 = ₹1,800 unless the employer allows full-basic contribution); employer 12%: 8.33% to EPS (pension, capped at ₹1,250) and the rest to EPF, plus EDLI 0.5% and admin 0.5% (min ₹500/month per establishment).
• ESI applies to establishments with 10+ employees (20 in some states for shops) in notified areas; employees with gross ≤ ₹21,000 (₹25,000 if disabled) are covered — 0.75% employee, 3.25% employer, rounded up to the rupee. Daily wage ≤ ₹176: employee share nil.
• Contribution period lock: an employee crossing ₹21,000 mid-period stays covered till September or March.
• Due dates: PF and ESI both by the 15th of the following month; late PF costs damages (5–25% p.a.) plus 12% interest; ESI late fee 12% p.a.

Worked example

Basic ₹18,000, gross ₹20,000, 25 employees: PF wage capped at ₹15,000 → employee ₹1,800; employer ₹1,800 = EPS ₹1,250 + EPF ₹550; EDLI ₹75, admin ₹75. ESI (gross ≤ ₹21,000): employee ₹150, employer ₹650. Deduction from salary ₹1,950; employer cost above gross ₹2,600.

Edge cases to know

• International workers contribute on full salary with no ceiling.
• Higher pension option (post-2022 Supreme Court) lets old members contribute EPS on full salary — a one-time election, closed for most.
• Contract staff on your premises are your PF/ESI responsibility if the contractor defaults (principal-employer liability).
• Voluntary PF (VPF) is extra employee contribution — no employer matching required.

Related tools

• Salary breakup — PF/ESI inside a CTC.
• EPF corpus calculator — the employee's view over a career.
• Professional tax.

Last verified: 18 September 2026 — EPF/EPS/EDLI/admin rates per EPFO (admin charge 0.5% from June 2018); ESI rates per ESIC notification of June 2019; thresholds ₹15,000 / ₹21,000 · Not legal advice.