Nowadays, a very common query is circulating among the members of EPFO – “what is EPF Wage?”. So, what exactly do we mean by EPF wages? Simply said, EPF wage is more of a layman’s term for EPF contribution by employee and employer which is double the employee’s contribution (12% or 10%). Therefore, to understand what is EPF wage, you just need to understand EPF contribution.
EPF Wages and EPS Wages
Under the Employee’s Provident Scheme by the EPFO, there is a sub-section of EPS or Employee’s Pension Scheme as well. Employee’s contribution goes to the EPF scheme only but the employer’s contribution goes partly to EPF and partly to EPS (8.33% of total employer’s contribution).
Refer the table below to understand the difference between EPF wages and EPS wages:
| Particulars | EPF | EPS |
| Employee’s Contribution | 12% or 10% | – |
| Employer’s Contribution | 3.67% | 8.33% |
EPF Wages in Passbook
Employees can check their EPF contribution in their EPF passbook, i.e. employer and employee contribution for each month. This passbook is a statement which contains detailed classification of EPF contribution, commonly known as EPF wages. PF passbook can be obtained online from the EPFO website or using the Umang mobile app.
EPF Wage Ceiling
As per EPFO, EPF contribution of 10% or 12% is based on the maximum wage ceiling of Rs. 15,000. This means that employee will contribution 12% of maximum Rs. 15,000 of wage and likewise, employer will match this amount to be credited in the PF account of the employee. That said, it is being proposed to increase this ceiling – maximum wage ceiling of Rs 21,000.
Look at the data tabulated below to understand how EPF wage ceiling has been increased since the commencement of the EPF scheme, 1952:
| Period | EPF Wages per month |
| 01.11.1952 to 31.05.1957 | Rs. 300 |
| 01.06.1957 to 30.12.1962 | Rs. 500 |
| 31.12.1962 to 10.12.1976 | Rs. 1,000 |
| 11.12.1976 to 31.08.1985 | Rs. 1,600 |
| 01.09.1985 to 31.10.1990 | Rs. 2,500 |
| 01.11.1990 to 30.09.1994 | Rs. 3,500 |
| 01.10.1994 to 31.05.2001 | Rs. 5,000 |
| 01.06.2001 to 31.08.2014 | Rs. 6,500 |
| Read more about EPF: | ||
| EPF Balance Check | EPF Correction Form | EPF Passbook |
| EPF Calculator | EPF Interest Rate | EPF Pension |
| EPF Contribution | EPF Online Claim | EPF Premature Withdrawal |
| Read more about UAN: | ||
| UAN | UAN Activation | |
| Read more about EPFO: | ||
| EPFO E-Sewa | EPFO Online Payment | EPFO KYC Online Update |
| EPFO Establishment | EPFO Member Portal | EPFO Registration Process |
| Read more about EPF Forms: | ||
| EPF Form 10C | EPF Form 19 | EPF Withdrawal Form 31 |
FAQ
Yes. EPF wages or simply EPF contribution is calculated on the employer’s basic salary + DA.
As per the EPF Act 1952, basic wages mean – all remunerations are earned by an employee while in service which are paid or payable in cash to him. It does NOT include food allowances (concessions), HRA, overtime allowance, DA, bonus, gifts by employer.
No. EPF wages are basically the contribution made to the employee’s EPF account. Whereas, basic wages are the remuneration earned by the employee for their work and is paid by the employer.
No. Basic salary is the amount on which EPF contribution is calculated and it includes the dearness allowance (DA). Basic wages do not include DA.
A part of the employer’s contribution to their employee’s PF account is directed to EDLI, i.e. 0.5%. So yes, EDLI can be taken as a part of EPF wages.
A part of the employer’s contribution (0.5%) goes to the insurance cover provided under the EPF scheme. This scheme is called as EDLI (Employee’s Deposit Linked Insurance). So technically, there is no term like EDLI wages. It can simply mean the contribution done towards the EDLI scheme.
EPS is a scheme to provide pension to the employees enrolled under the EPF scheme of the EPFO. Where EPF is the umbrella scheme, EPS is a part of it.
EPS full form: Employee Pension Scheme.
Employer contributes to the EPS fund of the employee. This is 8.33% of the total EPF contribution made by the employer into their employee’s EPF account.
