How is EPF calculated?

EPF corpus grows through two contribution streams: the employee contributes 12% of basic salary + DA to EPF, and the employer contributes 3.67% to EPF (the remaining 8.33% goes to the Employees' Pension Scheme). Interest at the declared annual rate is credited monthly on the running balance at the end of each financial year.

Is EPF withdrawal taxable?

EPF has EEE (Exempt-Exempt-Exempt) tax status: contributions up to ₹1.5 lakh qualify for 80C deduction, interest earned is tax-free, and the full maturity amount is tax-free — provided you have completed 5 continuous years of service. Premature withdrawal before 5 years is taxable as income.

What is the difference between EPF and EPS?

EPF (Employee Provident Fund) builds your retirement corpus — employee's 12% + employer's 3.67% goes here. EPS (Employee Pension Scheme) provides a monthly pension after retirement — employer's 8.33% (capped at ₹1,250/month) goes here. You can withdraw the EPF balance; EPS pays a monthly pension after age 58.

EPF Calculator India – Employee Provident Fund Returns

EPF Details

Basic + DA Salary (monthly)

₹

₹5K₹2L

Current EPF Balance

₹

₹0₹50L

Current Age

1858

Retirement Age

5060

EPF Interest Rate

5%12%

Goal presets

EPF Maturity Amount

₹0

at retirement

Employee Contribution

₹0

Employer Contribution

₹0

Interest Earned

₹0

Years to Retirement

0 yrs

EEE Tax Status

Contribution (80C), interest and maturity — all three are tax-free.

Corpus Breakdown

corpus ₹0

Employee

₹0

Employer

₹0

Interest

₹0

Year-by-Year EPF Growth

How your EPF corpus builds towards retirement

Employee

Employer

Interest

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Year-by-Year Schedule

Annual contributions, interest and closing balance

Year	Emp. Contribution	Employer Contribution	Interest	Balance

What is EPF?

EPF (Employee Provident Fund) is a mandatory retirement savings scheme governed by the EPFO (Employees' Provident Fund Organisation) under the EPF Act, 1952. It applies to all organisations with 20 or more employees where salary ≤ ₹15,000/month (compulsory registration).

Employee contribution12% of Basic+DA

Employer EPF contribution3.67% of Basic+DA

Employer EPS contribution8.33% (max ₹1,250/mo)

Current interest rate8.25% p.a.

EPF Example

Basic ₹30,000 · 30 years · 8.25%

Monthly employee = 12% × ₹30,000 = ₹3,600

Monthly employer EPF = 3.67% × ₹30,000 = ₹1,101

Total monthly = ₹4,701

Maturity ≈ ₹1.84 Cr (30 years)

Voluntary PF (VPF)

You can voluntarily contribute beyond 12% (up to 100% of basic) to get higher EPF interest on savings. VPF earns the same 8.25% rate, tax-free.

Frequently Asked Questions

Common questions about EPF

What is the current EPF interest rate?

The EPF interest rate for FY 2024-25 is 8.25% per annum, announced by the EPFO Central Board of Trustees. It was 8.15% in FY 2023-24. Interest is calculated monthly but credited annually on March 31.

How much does the employer contribute to EPF?

Employer contributes 12% of basic+DA, but it is split: 3.67% goes to EPF account, and 8.33% goes to EPS (Employee Pension Scheme), capped at ₹1,250/month (calculated on max ₹15,000 basic). Only the 3.67% EPF part grows with interest in your PF account.

Can I withdraw EPF before retirement?

Partial withdrawal is allowed for specific purposes: housing (after 5 years), medical emergency, marriage, education, and natural calamity. Full withdrawal is allowed on retirement (age 58), resignation (after 2 months of unemployment), or permanent disability. TDS at 10% applies if withdrawn before 5 continuous years of service.

Is EPF interest tax-free?

EPF has EEE status (Exempt-Exempt-Exempt): employee contribution is deductible under 80C, interest is tax-free, and maturity is tax-free. Exception: interest on employee contributions above ₹2.5 lakh/year (or ₹5L for govt employees) is taxable from FY 2021-22 onwards.

What happens to EPF if I change jobs?

With UAN (Universal Account Number), your EPF account is portable. You can transfer your old EPF balance to the new employer's EPF account online via the EPFO Member Portal. The UAN stays the same throughout your career. Avoid withdrawing — keep transferring to benefit from compounding.

What is VPF and should I use it?

VPF (Voluntary Provident Fund) lets you contribute more than the mandatory 12% — up to 100% of your basic. It earns the same 8.25% tax-free interest. Excellent for salaried employees who want safe, tax-free returns higher than FD or PPF. The extra contribution is deductible under 80C (within the ₹1.5L annual limit).

How can I check my EPF balance?

Four ways to check: (1) EPFO Member Portal at epfindia.gov.in, (2) UMANG app, (3) SMS "EPFOHO UAN ENG" to 7738299899 from registered mobile, (4) Missed call to 011-22901406 from registered mobile. Your UAN and Aadhaar/PAN must be linked for online access.

EPF vs NPS — which is better?

EPF: fixed 8.25% rate, fully tax-free at maturity, government-guaranteed. NPS: market-linked (10–12% historical), partial tax on maturity (40% annuity mandatory). For safety and guaranteed returns: EPF + VPF wins. For higher long-term wealth: NPS Tier-1 equity allocation may beat EPF over 30+ years.

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