The Employee Provident Fund is part of the Retirement Savings schemes in which the employee contributes and can withdraw the amount after their retirement. This retirement scheme is the government backed scheme and this EPF is administered by the EPFO. This scheme is designed to help the salaried employees to build their financial safety net for their post or after retirement life. When it comes to this scheme, the employees want to know about the New PF Contribution 2025 Limit. Based on this limit, the EPFO calculates the mandatory contributions.
New PF Contribution 2025 Limit
The New PF Contribution 2025 Limit is not yet provided as this EPF limit remains unchanged at Rs. 15,000 per month. This means that the contributions are calculated up to this wage ceiling. If both the parties which are employee and employer voluntarily agree to contribute in a higher salary, then in that case that wage ceiling will be different and the contributions are calculated on that basis only. The interest rate on this PF also remained at 8.25% per annum for this fiscal year 2024 – 2025. Both the parties (Employee & Employer) can contribute to EPF to foster savings. This article includes EPF structure, contribution rates and limits.
Employee Provident Fund 2025- Overview
| Post Title | New PF Contribution 2025 Limit |
| Year | 2025 |
| Country Name | India |
| Scheme Name | Employee Provident Fund |
| Administered By | EPFO |
| Contributors | Employees and Employers |
| Fiscal Year | 2024 – 2025 |
| Wage Limit | Rs. 15,000 |
| Employee Contribution Rate | 12% of Basic Pay |
| Employer Contribution Rate | 12% of Basic Pay with sub contributions |
| Current Interest Rate on EPF | 8.25% Per Annum |
| Category | News |
| Official Web Page | www.epfindia.gov.in |
EPF Contribution Structure 2025
EPF is a joint contribution scheme in which the employee and employer both contribute a fixed percentage of the basic pay and this fixed percentage is known as Contribution rate. Let’s know what is the contribution rate for this fiscal year:
| Contributor | Contribution Percentage |
| Employee | 12% of Basic Salary |
| Employer | 12% of Basic Salary |
But the employer contribution us further divided into more components:
- 8.33% goes to the EPS which is capped at Rs. 1,250 per month i.e. Rs. 15,000*8.33%.
- The remaining 3.67% goes to the EPF.
- 0.5% is contributed towards the EDLI.
New PF Contribution Limit 2025
The EPFO has retained the wage ceiling at Rs. 15,000 per month. It means that the mandatory contributions are computed as per this limit. Employees earning over Rs. 15,000 per month will have their EPF contributions restricted to this limit unless they opt for a higher voluntary contribution. The voluntary contribution on higher salary must be agreed by both employee and employer.
PF Contribution Calculation 2025
Let’s know how the EPF can be calculated with different examples:
Employee with a salary of Rs. 15,000
- Employee Contribution = Rs. 15,000 * 12% = Rs. 1,800
- Employer Contribution = Rs. 15,000 * 12% = Rs. 1,800
- To EPS (8.33%) = Rs. 15,000 * 8.33% = Rs. 1,250
- To EPF (Remaining) = Rs. 1,800 – Rs. 1,250 = Rs. 550
- Total Monthly EPF Contribution = Rs. 1,800 + Rs. 550 = Rs. 2,350
Employee with a salary of Rs. 30,000
Here the standard cap of Rs. 15,000 will be applied unless an agreement for higher contribution is made.
- Employee Contribution = Rs. 15,000 * 12% = Rs. 1,800
- Employer Contribution = Rs. 15,000 * 12% = Rs. 1,800
- To EPS (8.33%) = Rs. 15,000 * 8.33% = Rs. 1,250
- To EPF (Remaining) = Rs. 1,800 – Rs. 1,250 = Rs. 550
- Total Monthly EPF Contribution = Rs. 1,800 + Rs. 550 = Rs. 2,350
Employee with a salary of Rs. 30,000 – Higher Voluntary Contribution Agreed
- Employee Contribution = Rs. 30,000 * 12% = Rs. 3,600
- Employer Contribution = Rs. 30,000 * 12% = Rs. 3,600
- To EPS (8.33%) = Rs. 15,000 * 8.33% = Rs. 1,250 (Capped)
- To EPF (Remaining) = Rs. 3600 – Rs. 1250 = Rs. 2350
- Total Monthly EPF Contribution = Rs. 3,600 + Rs. 2,350 = Rs. 5,950
FAQ Related To New PF Contribution 2025 Limit
No, the wage limit for this fiscal year remains at Rs. 15,000.
The mandatory contributions are capped at Rs. 15,000 only if the employee salary has over Rs. 15,000. The employees with salary over this can choose voluntary higher contributions which must be agreed by both the employee and employer.
Through the EPFO official portal, the employees can check the PF Contribution rates and limits.
The employees can use EPFO portal, UMANG App to check the EPF Balance.