Educational Purpose Only: This calculator provides estimates for informational purposes. Employer EPF contribution is calculated at 3.67% of basic (capped at ₹15,000). Actual contributions may vary.
How it works
Every month, both you and your employer contribute to your EPF account. The employee contributes 12% of basic salary, while the employer contributes 12% of basic — but 8.33% of this goes to the Employee Pension Scheme (EPS, capped at ₹1,250/month), and only 3.67% (on basic up to ₹15,000) goes into the EPF. The accumulated balance earns interest at the EPF rate, compounded annually. This calculator iterates year by year with salary growth to project your final corpus.
EPF contribution breakdown
| Component | Rate | Where it goes |
|---|---|---|
| Employee | 12% of basic | 100% to EPF |
| Employer — EPF | 3.67% of basic (capped at ₹15,000) | EPF account |
| Employer — EPS | 8.33% of basic (max ₹1,250/month) | Employee Pension Scheme (not EPF) |
Tax benefits of EPF
EPF contributions by the employee are eligible for deduction under Section 80C of the Income Tax Act, up to ₹1.5 lakh per year. The interest earned and the maturity amount on withdrawal are tax-free, provided the employee has completed at least 5 continuous years of service. EPF qualifies under the Exempt-Exempt-Exempt (EEE) tax category.
Frequently Asked Questions
What is the current EPF interest rate?
The EPFO (Employees' Provident Fund Organisation) announces the EPF interest rate for each financial year. For FY 2023-24, the rate was 8.25% per annum, compounded annually. The rate is credited to EPF accounts after EPFO announces it, typically in March.
Can I withdraw my EPF before retirement?
Partial EPF withdrawal is allowed for specific purposes: home purchase or construction (up to 90% after 5 years), medical treatment (up to 6 months' wages), higher education or marriage of self/children (up to 50% after 7 years). Full withdrawal is allowed on retirement, resignation after 2 months of unemployment, or permanently moving abroad.
Is EPF interest taxable?
EPF contributions are deductible under Section 80C. Interest earned on contributions up to ₹2.5 lakh per year is fully tax-free. Interest on contributions above ₹2.5 lakh per year (introduced from FY 2021-22) is taxable as per your income slab. The maturity amount after 5 continuous years of service is tax-free.
What is the difference between EPF and EPS?
EPF (Employee Provident Fund) is the main savings account where both employee (12% of basic) and employer (3.67% of basic) contributions are deposited and earn interest. EPS (Employee Pension Scheme) receives 8.33% of the employer's contribution (up to ₹1,250/month) and is used to provide pension after 10 years of service. EPS contributions do not earn interest.
Related Calculators
This calculator uses simplified assumptions about contribution rates and salary growth. Actual EPF balances depend on your exact employer contributions, withdrawal history, and EPFO interest rate notifications. Consult your HR or a financial advisor for exact figures.
About EPF Calculator
Calculate your Employee Provident Fund corpus at retirement, including employee and employer contributions with compounded interest. This tool is designed to be simple and accessible for users who need quick, reliable results.
When to use this tool
Use the epf calculator when you need an accurate, immediate calculation without installing software or registering an account. It is especially useful for everyday decisions, quick comparisons, and planning where you need numbers fast.
How it works
The calculator applies standard, well-known formulas and conventions appropriate to the domain. Results are computed instantly in your browser to preserve privacy and avoid sending personal data to servers.
Limitations and tips
This tool provides informative estimates and is not a substitute for professional advice. For complex or high-stakes decisions, verify results with a qualified professional. Double-check inputs such as units, dates, and currency settings before making decisions.