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.
Why this calculator is useful
Calculate your Employee Provident Fund corpus at retirement, including employee and employer contributions with compounded interest. This page is designed to help readers understand the financial scenario clearly, compare the numbers, and make better decisions with practical context.
Why this matters
EPF Calculator turns a common financial or planning question into a clear number you can compare, discuss, and act on.
What to review
Use realistic inputs and update assumptions if your situation changes, because even small changes can shift the outcome noticeably.
How to use the result
Treat the calculation as a practical planning guide and verify it with your records or a professional for important decisions.
Quick examples and best practices
- Use realistic inputs: Enter values that match your real income, loan terms, or investment profile so the result feels practical.
- Compare scenarios: Change one variable at a time to see how the result shifts before making a decision.
- Verify major choices: For high-stakes decisions, cross-check the output with documents, spreadsheets, or a qualified professional.
Common 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.