What does an employer pay in PF and ESI per employee in India?

EPFO charges a lower EPF rate and separate administrative charges in some cases; we could not read EPFO's rate table, so those are not shown. ESI is a single rate, 3.25%, on wages up to the ESI limit.

The figures side by side

How we got this number

1. Take the employer EPF rate from EPFO's FAQ: the employer pays 12%, 8.33% of which goes to the pension fund, plus 0.5% EDLI.
2. Take the PF wage ceiling from the Ministry of Labour releases on PIB: ₹25,000 a month from 17 September 2026, up from ₹15,000. Older EPFO pages still print ₹15,000.
3. Take the ESI employer rate (3.25%) and the wage limit (₹21,000 a month) from ESIC's own contribution and coverage pages.
4. Multiply rate by ceiling for a monthly maximum per employee. These are derived figures, shown as such in the table; the page does not add PF and ESI together because they apply to different wage bases.

What this number does not tell you

• Rates and ceilings change by notification. The EPF wage ceiling moved from Rs 15,000 to Rs 25,000 on 17 September 2026 (S.O. 5109(E)), and several EPFO pages still print Rs.15000 or Rs.15,000. Check the current notification before budgeting.
• EPFO charges a lower EPF rate in some cases and separate administrative charges. We could not read EPFO's rate table, so those are not shown here; check EPFO's current rate table.
• Contribution on wages above the ceiling needs a joint request from employee and employer, and the employer then pays administrative charges on those higher wages. Without that request the ceiling caps the base.
• ESI is not universal: it applies to factories with 10 or more persons and to shops, hotels and other classes where the state or Centre has extended it, and only in notified areas (the scheme is yet to be notified in 135 districts). Rules differ by state and establishment type.
• ESIC exempts employees with a daily average wage up to Rs.176 from their own contribution, but the employer still pays 3.25%. Employee shares (the employee's 0.75% for ESI and the employee's EPF share) come out of wages and are not an employer cost.
• Not counted: gratuity, bonus, leave encashment, payroll software, filing and audit fees, and any penalties or interest for late payment.

Sources

1. EPFO, Frequently asked questions, Last Updated: October 27, 2026The pension calculation will be as per para 12 of EPS 95. … The employer pays 12% out of which 8.33% is diverted to Pension Fund. … An employer also pays 0.5% of Pay in EDLI Scheme.
2. Ministry of Labour & Employment, PIB Delhi, Cabinet approves higher EPFO wage ceiling, Posted On: 16 SEP 202615,000 to Rs. … 25,000 per month with effect from Vishwakarma Jayanti and Sewa Divas on 17 September 2026.
3. Ministry of Labour & Employment, PIB Kolkata, EPFO raises wage ceiling, Posted On: 23 SEP 20265109(E) issued by the ministry of labour and employment. … With the pensionable wage ceiling increased to Rs.25,000, the maximum employer pension contribution at 8.33% will rise from Rs.1,250 to Rs.2,083 per month.
4. Ministry of Labour & Employment, PIB Imphal, EPFO wage ceiling enhanced, Posted On: 23 SEP 2026The enhancement will bring eligible employees drawing wages between ₹15,000 and ₹25,000 per month within the statutory social-security framework, subject to the applicable provisions.
5. ESIC, Contribution, Last updated / Reviewed : 2025-04-0401.07.2019) is 0.75% of the wages and that of employer's is 3.25% of the wages paid/payable in respect of the employees in every wage period. … Employees in receipt of a daily average wage upto Rs.176/- are exempted from payment of contribution.
6. ESIC, Coverage, Last updated / Reviewed : 2025-04-04AREAS COVERED The ESI Scheme is now notified 668 Districts in 36 States and Union Territories, which include 565 fully notified districts and 103 partially notified districts where scheme is notified in Districts Headquarters Area & in Prominent Industrial Centers Under Section 1(3) of ESI Act, 1948. … The existing wage limit for coverage under the Act, effective from 01.01.2017, is Rs.21,000/- per month (Rs.25,000/- per month in the case of Persons with Disability). … The Scheme is yet to be notified in 135 districts.

Worked out by us: ₹3,000 (12% × ₹25,000 (the ceiling in the PIB 16 September 2026 release) = ₹3,000 a month, the most the employer's 12% share can be on the mandatory-coverage base.); ₹1,800 (12% × ₹15,000 (the ceiling before 17 September 2026) = ₹1,800 a month.); ₹682.50 (3.25% (ESIC employer rate) × ₹21,000 (ESIC wage limit) = ₹682.50 a month; ESIC may round to the whole rupee when collecting.).

Questions people ask

How much PF does an employer pay per employee each month in India?

12% of PF wages to EPF (8.33% of it to the pension scheme), plus 0.5% EDLI, per EPFO. Since 17 September 2026 the ceiling is ₹25,000 a month, so the 12% share is at most ₹3,000 (derived).

How much ESI does an employer pay per employee?

3.25% of wages, with the employee paying 0.75%, per ESIC. ESI covers wages up to ₹21,000 a month, so the employer share is at most ₹682.50 a month (derived).

Did the PF wage ceiling change in 2026?

Yes. PIB reports the ceiling went from ₹15,000 to ₹25,000 a month on 17 September 2026 under S.O. 5109(E). Older EPFO pages still print ₹15,000.

Does every employer pay 12% PF?

Not always. EPFO charges a lower rate in some cases; check EPFO's current rate table.

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This figure is from EPFO and ESIC's own release or a report quoting it. We recheck it half-yearly. If you have a newer or better source, send it to us.