Provident Fund deductions show up on every payslip in India. This page explains what they are, what the rates are, and how the numbers are derived — no jargon.
PF stands for Provident Fund. On Indian salary slips it refers to the Employees' Provident Fund (EPF) — a statutory, government-mandated savings scheme run by the Employees' Provident Fund Organisation (EPFO) under the EPF and MP Act, 1952.
Each month, a fixed percentage of your basic salary is channelled into your EPF account. Your employer puts in a matching amount. The corpus grows with declared interest and is accessible primarily upon retirement, resignation after a qualifying period, or under specific circumstances permitted by EPFO.
Why it appears as a deduction: PF reduces your take-home pay because your share comes out of your gross salary. The employer's contribution is a separate cost to the company and does not reduce your salary.
Establishments employing 20 or more persons are required by law to register with EPFO. Once covered, both employer and employee obligations are non-negotiable for eligible employees.
Both employee and employer contribute 12% of Basic Salary + DA. The employer's 12% is further split between EPF and the Employees' Pension Scheme (EPS).
If your employer has 20 or more employees and your basic pay is at or below ₹15,000, EPF enrolment is compulsory. You cannot opt out.
You may opt into EPF at the time of joining a new establishment. Once enrolled, you cannot withdraw from the scheme while still employed there.
PF is not computed on your full gross salary. The base is narrower than most people assume.
Only Basic Salary + Dearness Allowance (DA) counts. HRA, travel, bonus, and other allowances are excluded entirely.
Apply 12% to the base. This amount is deducted from your monthly gross pay and credited to your EPF account.
The employer also contributes 12% of the base, split between EPF (3.67%) and EPS (8.33%, capped at a ₹15,000 wage ceiling).
Your 12% plus the employer's EPF portion (not EPS) is what goes into your UAN-linked account each month.
Gross ₹50,000 → PF ₹3,600 deducted → Net ₹46,200. Employer's matching ₹3,600 is a separate company cost and does not appear here.
Enter your monthly basic salary. The calculator applies current EPFO statutory rates.
Offrd automatically applies correct EPF contribution rates, splits employer contributions between EPF and EPS, and generates compliant payslips — for every employee, every month. Trusted by 3,000+ companies across India.