PF is usually calculated as 12% of basic salary plus dearness allowance, if applicable
Employee PF contribution = 12% of basic salary + dearness allowance
Employer PF contribution = 12% of basic salary + dearness allowance
Employer’s 12% is split into:
67% to EPF
33% to EPS, subject to wage ceiling rules
If basic salary + dearness allowance is above the PF wage ceiling, PF may still be calculated on the ceiling amount as per applicable rules
Formula: PF = Basic Salary × 12% or (Basic Salary + DA) × 12%
Example: If basic salary is 20,000, employee PF = 20,000 × 12% = 2,400
Example: If basic salary + DA is 15,000, employee PF = 15,000 × 12% = 1,800