Proposed Higher Wage Ceiling Tool

Understanding the Math & Tradeoffs

By law, the employer matches your 12% EPF contribution. However, the employer's 12% is split into two buckets: 8.33% goes to EPS (Pension) and the remaining balance goes to EPF (Provident Fund corpus).

Currently, the 8.33% EPS slice is hard-capped at a wage limit of ₹15,000 (meaning max ₹1,250/month goes to pension). If the ceiling is raised to ₹25,000, the EPS slice can absorb up to ₹2,083/month.

⚠️ The Tradeoff: Because the employer's total contribution remains fixed at 12%, routing more money into the EPS pension bucket mathematically means less money goes into your lump-sum EPF corpus bucket.