What is the maximum salary limit for PF deduction in India?

The statutory wage ceiling under the EPF Act is ₹15,000 per month on Basic + DA. If an employee earns more than ₹15,000 basic, the employer can either cap the contribution at 12% of ₹15,000 (₹1,800/month) or opt to contribute on the full basic salary through a Joint Declaration.

What is the wage threshold for ESI applicability?

The Employee State Insurance (ESI) scheme is applicable to employees whose Gross Monthly Wages do not exceed ₹21,000 (₹25,000 for persons with disability). Employees earning above ₹21,000 are completely exempt from ESI contributions.

What is the split of the Employer's 12% PF contribution?

The Employer's 12% contribution is split into two parts: 8.33% goes to the Employee Pension Scheme (EPS) capped at ₹1,250 per month, and the remaining 3.67% goes directly to the Employee Provident Fund (EPF). In addition, the employer pays 0.50% EPF Admin charges and 0.50% EDLI insurance charges.

EPFO & ESIC Compliant (2026 Rules & Slabs)

EPF & ESI Contribution Calculator India

Calculate exact employee deductions and employer statutory costs. Verified with the ₹15,000 PF wage ceiling, ₹21,000 ESI gross threshold, and monthly EPFO electronic challan (ECR) rules.

Employee Salary ParametersMonthly Basis

Gross Monthly Salary (₹)₹25,000

Basic Salary + Dearness Allowance (DA) (₹)₹15,000

*Under Indian statutory compliance, Basic + DA must constitute at least 50% of Gross wages.

Enforce Statutory ₹15,000 PF Wage Ceiling (Recommended)If enabled, EPF deduction is calculated on max ₹15,000 (₹1,800/mo cap). If disabled, 12% is deducted on actual basic wage.

Enable ESI Scheme VerificationESIC applies only to employees earning Gross wages ≤ ₹21,000/month.Current salary exceeds ceiling (ESI Exempt).

Employee Total Deduction₹1,800Deducted from monthly pay

Employer Statutory Cost₹1,950Company contribution over Gross

Statutory Breakdown (Monthly)

A. Employee Deductions

EPF Contribution (12% of Basic)₹1,800

ESI Contribution (0.75% of Gross)₹0 (Exempt)

Net Estimated Take-Home (Pre-Tax)₹23,200

B. Employer Contributions & Admin Charges

EPS (Pension Fund 8.33% - Capped at ₹1,250)₹1,250

EPF (Provident Fund 3.67%)₹550

EPF Admin Charges (0.50%) + EDLI (0.50%)₹150

Employer ESI Contribution (3.25% of Gross)₹0 (Exempt)

Total Monthly Cost to Company (CTC)₹26,950

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EPF & ESI Contribution Rates & Wage Slabs (2026 Reference)

Under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, and the Employees' State Insurance Act, 1948, employers in India must deduct and deposit statutory dues on or before the 15th of every succeeding month.

Statutory Component	Wage Ceiling	Employee Rate	Employer Rate	Admin / Extra Charges
EPF (Provident Fund)	₹15,000 / month	12.00%	3.67%	0.50% (EPF Admin Charge)
EPS (Pension Scheme)	₹15,000 / month	NIL	8.33% (Max ₹1,250)	0.50% (EDLI Insurance)
ESIC (Medical Insurance)	₹21,000 Gross / month	0.75%	3.25%	NIL

Frequently Asked Questions on EPF & ESI in India

Is EPF mandatory for companies with fewer than 20 employees?

Under Section 1(3) of the EPF Act, mandatory registration applies once a business reaches 20 or more employees. However, voluntary PF registration is permitted and widely practiced for smaller teams to offer employee welfare benefits.

What happens if an employee's Basic Salary exceeds ₹15,000?

If the basic salary exceeds ₹15,000, the statutory minimum contribution is 12% of ₹15,000 (i.e. ₹1,800/month). However, employer and employee can mutually opt under Joint Declaration (PF Form 11 / Para 26(6)) to contribute on the full basic salary without the ₹15,000 ceiling.

Why is ESI not deducted if Gross Salary is ₹22,000?

The wage threshold for ESIC applicability is ₹21,000 gross per month. If an employee earns ₹22,000, they are exempt from ESI deductions. However, if their salary was under ₹21,000 at the start of the contribution period (April–September or October–March), they remain covered until that contribution cycle concludes.

How does MicroPlesk automate monthly PF & ESI filing?

MicroPlesk syncs daily attendance from your eSSL biometric machines and calculate salary with exact statutory deductions. At month-end, click 'Export ECR' to generate the official text file format ready for 1-click upload on the EPFO Employer Portal and ESIC Shram Suvidha portal.

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