Skip to content

EPF, EPS and EDLI Explained: The Three Parts of Your PF

All guides ↓

Independent guide by India Customer Care. We are not EPFO. Use only the official EPFO portals and the UMANG app for your account, and never share your password or OTP with anyone.

On this page
  1. Where the money goes
  2. An example
  3. How it is organised: UAN and member IDs
  4. Where to start
  5. Frequently asked questions
  6. Sources
Show only what applies to you

Pick your situation. Parts of this page that don't apply will fold away. Your choice stays on this device.

Monthly PF wage (basic + DA)

Every month 12% of your PF wage is cut from your salary and your employer adds another 12%. All of yours and part of your employer's goes to EPF, your savings with interest. 8.33% from the employer goes to EPS, which pays a pension. Your employer separately pays 0.5% for EDLI, free life insurance of up to ₹7 lakh for your family.

Where the money goes

  1. Your 12% of PF wage
  2. EPF: your savings account
  3. Employer's 12%: 8.33% to EPS pension
  4. Rest of employer's 12% (3.67%) to EPF
  5. Employer also pays 0.5% EDLI insurance
You payGoes to your EPFPension and insurance
PartWhat it isWhat you getCan you withdraw it?
EPFYour savings: your 12% plus 3.67% from the employer, with interest (8.25% for 2025-26)A lump sum at retirement; advances during serviceUp to 75% after 12 months; everything on retirement
EPSPension fund: 8.33% of wages up to ₹25,000 (max ₹2,083) from the employer, plus 1.16% from the Government on wages up to ₹15,000Monthly pension from 58 after 10 years of service; family pension if you dieOnly if service is under 10 years, after 36 months out of work
EDLIInsurance paid by the employer (0.5% of wages)Up to ₹7 lakh to your family if you die while a memberNo: it is insurance

An example

PF wage ₹15,000

You pay ₹1,800. Your employer pays ₹1,250 to EPS and ₹550 to EPF. So ₹2,350 goes into your EPF each month, and ₹1,250 builds your pension.

PF wage ₹20,000

You pay ₹2,400. Your employer pays ₹1,666 to EPS and ₹734 to EPF. So ₹3,134 goes into your EPF each month, and ₹1,666 builds your pension.

PF wage ₹25,000 or more

Contributions are normally worked out on ₹25,000: you pay ₹3,000, your employer pays ₹2,083 to EPS and ₹917 to EPF. If you are not an EPS member, the employer's full ₹3,000 goes to EPF.

How it is organised: UAN and member IDs

You get one UAN for life. Each employer opens a member ID under it. When you change jobs, you keep the UAN and transfer the old balance, so your service adds up for pension and tax.

Where to start

Frequently asked questions

Is EPF compulsory?

Yes, for employees with PF wages up to ₹25,000 a month in establishments covered by EPFO. Above that it is voluntary, with the employer's consent.

Can I stop my PF contribution?

Not while you are a covered employee. If your PF wage is above ₹25,000 and you were never a member, you may join or not; ask your employer.

Who runs EPF?

The Employees' Provident Fund Organisation (EPFO), under the Ministry of Labour and Employment.

Sources