EPF, EPS and EDLI Explained: The Three Parts of Your PF
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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
- Your 12% of PF wage
- EPF: your savings account
- Employer's 12%: 8.33% to EPS pension
- Rest of employer's 12% (3.67%) to EPF
- Employer also pays 0.5% EDLI insurance
| Part | What it is | What you get | Can you withdraw it? |
|---|---|---|---|
| EPF | Your savings: your 12% plus 3.67% from the employer, with interest (8.25% for 2025-26) | A lump sum at retirement; advances during service | Up to 75% after 12 months; everything on retirement |
| EPS | Pension 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 ₹15,000 | Monthly pension from 58 after 10 years of service; family pension if you die | Only if service is under 10 years, after 36 months out of work |
| EDLI | Insurance paid by the employer (0.5% of wages) | Up to ₹7 lakh to your family if you die while a member | No: 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
- First job? Generate your UAN, then add KYC and nominate your family.
- Want to see your money? Check your PF balance.
- Need money? PF withdrawal rules.
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
- EPFO: Wage ceiling FAQs, Sep 2026 (contribution split and examples, Government's 1.16%, EDLI ₹7 lakh, 8.25% interest).
- EPFO: EPF Scheme, Pension Scheme and EDLI pages, accessed 5 Nov 2026.