EPF Calculator (Provident Fund)
Employee Provident Fund is the cornerstone of retirement planning for salaried individuals in India. Plan your future corpus today.
EPF Retirement
₹1,68,37,077
Employer contributes 12%. Out of this, 3.67% goes to EPF and 8.33% goes to EPS (Pension Scheme).
Interest rate is fixed at 8.25% for 2025-26. Actual results may vary if Govt changes rates or your salary structure changes.
How EPF Works in India
EPF is a mandatory savings scheme for organizations with 20 or more employees. Both you and your employer contribute a portion of your salary to the EPFO, which then earns a fixed annual interest.
Compounding Power
Interest is calculated monthly but credited annually, creating massive long-term growth.
Pension Benefit
A portion of your employer's contribution builds your pension (EPS) for life after 58.
Tax Exemption
Contributions are deductible under 80C, and the final maturity amount is tax-free after 5 years.
Key Components of EPF
- Employee Contribution: Exactly 12% of your Basic + DA.
- Employer Contribution: 12% in total (3.67% to EPF + 8.33% to EPS).
- Current Rate: 8.25% for the latest financial cycle.
- EDLI: Employer also contributes 0.5% towards life insurance for the employee.
Understanding Your EPF Statement
Your EPF passbook (available on the EPFO Member Portal or UMANG app) shows three key accounts:
- Employee Share: 12% of your Basic+DA contributed every month. This earns EPF interest.
- Employer Share (EPF): 3.67% of employer's 12% contribution to EPF. This also earns interest.
- Employer Share (EPS): 8.33% of employer's 12% goes to the Pension Scheme. This does NOT earn EPF interest but funds your monthly pension.
EPF vs VPF: Should You Invest More?
Voluntary Provident Fund (VPF) allows you to contribute more than the mandatory 12% to your EPF account — up to 100% of Basic+DA. The VPF earns the same 8.25% interest and enjoys the same tax benefits (EEE status). It is one of the highest risk-free returns available with full tax exemption. If you are in a high tax bracket, VPF can be more tax-efficient than FD or even mutual funds for debt allocation.
EPF Withdrawal Rules at a Glance
- Retirement (Age 58): Full withdrawal of EPF + EPS (if service less than 10 years). Pension starts if service more than 10 years.
- Unemployment (2 months+): Full EPF withdrawal allowed. EPS can be withdrawn if service less than 10 years.
- House Purchase: Up to 90% of EPF balance after 5 years of service for purchase, construction, or repayment of home loan.
- Medical Emergency: Up to 6 months' Basic+DA or total EPF balance, whichever is lower — no minimum service required.
Frequently Asked Questions
What is the current interest rate for EPF?
The EPF interest rate for the financial year 2024-25 is 8.25%. This rate is declared by the EPFO (Employees' Provident Fund Organisation) annually.
How is the EPF contribution split?
The employee contributes 12% of basic salary + DA. The employer also contributes 12%, but it is split: 3.67% goes to the EPF account, and 8.33% goes to the EPS (Employee Pension Scheme).
Is there a limit on basic salary for EPF?
For mandatory EPF contribution, the wage ceiling is currently ₹15,000. However, most organizations allow contributions on full basic salary.
When can I withdraw my EPF balance?
You can withdraw your full EPF balance upon retirement (age 58) or if you remain unemployed for more than 2 months. Partial withdrawals are allowed for specific reasons like marriage, home purchase, or medical emergencies.
Is EPF withdrawal taxable?
EPF withdrawals are tax-free if you have completed 5 years of continuous service. If withdrawn before 5 years, it is taxable as per your income tax slab.
What is the current EPF interest rate for 2025-26?
The EPFO (Employees' Provident Fund Organisation) has declared the EPF interest rate for FY 2024-25 as 8.25% per annum. This rate is credited annually to member accounts after the end of each financial year.
How much does an employee contribute to EPF?
Both the employee and employer contribute 12% of the employee's Basic Salary + DA each month. The employee's 12% goes entirely to the EPF account. The employer's 12% is split: 8.33% goes to the EPS (Employee Pension Scheme) and 3.67% goes to the EPF account.
Can I withdraw my EPF before retirement?
Yes. You can make partial withdrawals for specific purposes: marriage (up to 50% after 7 years), education (50% after 7 years), purchase/construction of house (after 5 years), medical emergency (6 months' salary or EPF balance, whichever is lower). Full withdrawal is allowed only after 2 months of unemployment or at retirement (age 58).
Is EPF withdrawal taxable?
EPF withdrawals after 5 years of continuous service are completely tax-free. If you withdraw before 5 years of service, the amount is added to your income and taxed at your applicable slab rate, and TDS at 10% is also deducted (if withdrawal exceeds ₹50,000).
What is EPS (Employee Pension Scheme) and how is it different from EPF?
EPS is a pension scheme funded by the employer's contribution (8.33% of Basic+DA, capped at ₹1,250/month). EPF is a provident fund where both employee and employer contribute and you receive a lump sum at retirement. EPS provides a monthly pension after retirement. You cannot withdraw EPS as a lump sum (only for less than 10 years of service).