EPF Calculator (FY 2026-27)
See exactly how much your Employee Provident Fund will be worth at retirement — including the employer’s split between EPF and EPS, the tax-free interest you’ll earn, and a year-by-year breakup at the FY 2025-26 declared rate of 8.25%.
Enter your EPF inputs
📊 Show year-by-year breakup (every 5 years)
| Year | Age | Monthly basic | Employee EPF | Employer EPF | EPS (pension) | EPF balance EOY |
|---|---|---|---|---|---|---|
| — | ||||||
Of the employer’s 12%: 8.33% goes to EPS (capped at ₹1,250/month — i.e., 8.33% of ₹15,000 basic), the rest goes to EPF. EPS does not accumulate the same way — it funds a defined-benefit pension after age 58.
How EPF actually works
Every month, two contributions hit your EPF account: 12% from you and 12% from your employer — both calculated on basic+DA. But the employer’s 12% is split internally.
Employee → 12% goes to EPF
Employer → 8.33% goes to EPS (capped at ₹1,250)
Employer → 3.67% (or balance) goes to EPF
Both the employee and employer EPF portions earn interest annually at the EPFO-declared rate. The EPS portion does not compound the same way — it funds a defined-benefit pension paid monthly after age 58 (the formula is roughly (pensionable salary × pensionable service) / 70, capped at ₹7,500/month for most).
The ₹15,000 EPS cap (the most-misunderstood rule)
The 8.33% EPS diversion is calculated on a basic salary capped at ₹15,000 — so the maximum monthly EPS contribution is ₹1,250 (8.33% of ₹15,000). If your basic is higher, the entire excess employer contribution flows into EPF instead. This is why high-basic-salary employees see a much larger employer EPF portion than the textbook 3.67%.
The ₹2.5L tax rule (Finance Act 2021)
From FY 2021-22, if your own EPF contribution exceeds ₹2.5 lakh in a financial year (₹5L for govt employees), the interest earned on the excess is taxable at your slab rate. This kicks in around ₹20.83L annual basic salary. The employer’s contribution and the corpus itself remain tax-free.
The math on a real example
Software engineer, age 30, ₹50,000/month basic — 8% annual hike, retiring at 58, 8.25% EPF rate, starting balance ₹0:
- Monthly employee EPF: ₹6,000 (12% of ₹50k)
- Monthly EPS: ₹1,250 (capped — 8.33% of ₹15k)
- Monthly employer EPF: ₹4,750 (12% of ₹50k − ₹1,250 EPS)
- Combined monthly EPF flow: ₹10,750
- Corpus at age 58 (28 years): approximately ₹3.7-4.5 crore (depending on rate stability)
- Tax-free interest component: roughly 60-65% of the final corpus — the magic of 28-year compounding
This is what makes EPF the most under-appreciated retirement tool for Indian salaried workers: forced monthly savings, tax-free compounding at one of the highest sovereign-guaranteed rates available, and tax-free at withdrawal.
EPF vs PPF vs NPS — which compounds harder?
EPF wins on rate (8.25%) and on the employer match — that match alone is a 100% instant return on your contribution. PPF (currently 7.1%) is open to non-salaried but capped at ₹1.5L/year. NPS has equity exposure and historically delivers 9-12% but only 60% is tax-free at exit. Rule of thumb: never withdraw EPF on job change. The transferred balance keeps compounding — withdrawing resets the clock and triggers tax if you exit before 5 years of continuous service.
Want the full salaried-investor playbook?
Get my Sunday email — one tactical money decision per week. Plus the free Clarity Playbook on how Indian salaried investors actually build wealth alongside EPF.
Get the free book →Frequently asked questions
What is EPF?
EPF (Employee Provident Fund) is India’s mandatory retirement savings scheme for salaried employees in companies with 20+ workers. Both employee and employer contribute 12% of basic+DA. The corpus earns annually-declared interest (8.25% for FY 2025-26) and is tax-free at withdrawal after 5 years of continuous service. It’s one of the most tax-efficient long-term wealth-building tools available to Indian salaried workers.
Who is eligible for EPF?
EPF is mandatory for any employee earning a basic up to ₹15,000/month at a company with 20+ employees. Employees with basic above ₹15,000 can voluntarily opt in (most companies enrol everyone by default). EPF is statutory under the EPF Act 1952 and applies regardless of designation, age, or contract type as long as the employer is covered.
What is the EPF interest rate for FY 2025-26?
The EPFO declared 8.25% for FY 2025-26 — same as FY 2024-25 and FY 2023-24. Historically the rate has ranged 8.10%-8.65% over the last decade. It’s set annually by the Central Board of Trustees (CBT) and notified after Ministry of Finance approval. Interest is credited yearly but compounded on the monthly running balance internally.
What is the difference between EPF, EPS and PF?
“PF” is the umbrella term. Inside the employer’s 12%: 8.33% goes to EPS (Employee Pension Scheme — defined-benefit pension capped at ₹15,000 basic, ₹1,250/month max), and the remaining 3.67% goes to EPF. The full 12% employee contribution goes entirely to EPF. EPS gives you a monthly pension after age 58; EPF gives you a lumpsum corpus.
Can I withdraw EPF before retirement?
Yes, partial withdrawals are allowed for: home purchase/construction (after 5 years of service), home loan repayment, children’s higher education or marriage, medical emergency, or after 1-2 months of unemployment. Full withdrawal before 5 years of continuous service makes the corpus taxable. File via UAN portal — Form 31 (advance) or Form 19 (final).
Is EPF tax-free?
Mostly yes. Employee contribution (Sec 80C up to ₹1.5L), employer contribution, interest earned, and corpus at withdrawal — all tax-free, IF you complete 5 years of continuous service. One catch (Finance Act 2021): if your own contribution exceeds ₹2.5L/year, interest on the excess is taxable. Govt employees: ₹5L threshold.
What is the EPF contribution limit?
No upper cap on contribution — it’s always 12% of actual basic+DA. The ₹15,000 cap only applies to the EPS portion: even if your basic is ₹2L, only ₹15,000 is considered for the 8.33% EPS diversion (₹1,250/month), and the rest of the employer’s 12% goes entirely to EPF. The ₹2.5L cap is a tax threshold, not a contribution limit.
What happens to my EPF if I switch jobs?
Your UAN stays the same across employers. After joining the new company, file Form 11 and request EPF transfer via the EPFO Member Portal — your previous balance moves to the new account and continues compounding. Never withdraw between jobs — withdrawal before 5 years of continuous total service makes the corpus taxable. Continuous service counts across employers as long as you transferred (not withdrew).