Before you generate an ECR file, it helps to know how the numbers inside it are actually arrived at. Here's the calculation EPFO uses, updated for the current wage ceiling.
1. What counts as "EPF wages"?
EPF contribution is calculated on Basic pay + Dearness Allowance (DA) — not on gross salary. Allowances like HRA, conveyance, or special allowance are generally excluded, though certain "wage-in-kind" style allowances can be included depending on how they're structured. This is why the ECR format has a separate EPF_WAGES column distinct from GROSS_WAGES.
2. The wage ceiling: ₹25,000/month
EPFO caps the wages used for EPS and EDLI calculations. This ceiling was raised from ₹15,000 to ₹25,000 per month, effective 17 September 2026, under Gazette Notification S.O. 5109(E). If an employee's EPF wages exceed ₹25,000, EPS and EDLI contributions are still capped at ₹25,000 — only the EPF share can continue on the actual (higher) wage if the employer chooses to contribute that way.
3. Employee's contribution — 12%
The employee contributes a flat 12% of EPF wages every month. This entire amount goes into the employee's EPF account. There's no ceiling applied here unless the employer specifically restricts contributions to the wage ceiling.
4. Employer's contribution — also 12%, but split
The employer also contributes 12%, but it's divided into two parts:
- 8.33% goes to the Employees' Pension Scheme (EPS) — capped at the ₹25,000 wage ceiling, so max ₹2,083/month
- 3.67% (or whatever remains after the EPS share) goes to the employee's EPF account
On top of this, the employer also pays an EDLI (Employees' Deposit Linked Insurance) contribution — typically 0.5% of EDLI wages, also capped at the ₹25,000 ceiling — plus applicable EPF administration charges.
5. Worked example
Employee with EPF wages of ₹25,000/month (at the ceiling):
For an employee earning above ₹25,000, the EPS and EDLI figures stay the same (capped), but EPF_WAGES and the employee/employer EPF contributions can continue on the actual higher wage if the employer contributes that way.
6. How this maps to your ECR file
These calculated figures map directly onto the ECR columns this tool validates:
| ECR column | What goes here |
|---|---|
EPF_WAGES | Basic + DA used for EPF calculation |
EPS_WAGES | EPF wages, capped at ₹25,000 |
EDLI_WAGES | Same as EPF wages, capped at ₹25,000 |
EPF_CONTRIBUTION_REMITTED | Employee's 12% share |
EPS_CONTRIBUTION_REMITTED | Employer's 8.33% share (capped) |
DIFF_EPF_EPS_CONTRIBUTION_REMITTED | Employer's residual EPF share |
This is exactly what the validator on the generator page checks for you — wage-cap breaches, mismatched EDLI/EPF wages, and so on — before you generate the file.