How do changes in my basic salary affect EPF calculations?

Any changes in your basic salary will directly impact your monthly EPF contributions, which are calculated as 12% of your monthly basic salary.

For example, if your basic salary increases from ₹30,000 to ₹40,000 per month, your EPF contribution will increase as follows:

Old basic salary: ₹30,000

12% of ₹30,000 = ₹3,600 per month (Your EPF contribution)

New basic salary: ₹40,000

12% of ₹40,000 = ₹4,800 per month (Your new EPF contribution)

Therefore, your EPF contribution will increase in proportion to the increase in your basic salary. A salary hike will mean higher monthly deductions towards EPF.