EPF Calculator

EPF (Employee Provident Fund) is a mandatory retirement savings scheme for employees earning up to ₹15,000/month basic salary in organisations with 20+ employees. Employees earning above ₹15,000 can opt into EPF voluntarily. Contributions are 12% each from employee and employer on Basic + DA. The account earns a government-declared interest rate (currently 8.25% p.a.) and is managed by EPFO.

EPF (Employee Provident Fund) is your retirement savings corpus — both employee (12%) and part of employer (3.67%) contributions go here, earning interest. EPS (Employees' Pension Scheme) is funded by 8.33% of employer's 12% contribution (capped at ₹1,250/month) — this builds a pension entitlement, not a withdrawable corpus. On retirement after 10+ years of service, you get a monthly EPS pension calculated as: (Pensionable Salary × Pensionable Service) / 70.

The EPF interest rate is set annually by the EPFO Central Board of Trustees and notified by the Ministry of Labour and Employment. Recent rates: FY 2023-24: 8.25%, FY 2022-23: 8.15%, FY 2021-22: 8.10%, FY 2020-21: 8.50%, FY 2019-20: 8.50%. The interest is calculated monthly on the closing balance but credited annually. Our calculator uses 8.25% as the default, which you can adjust.

Full EPF withdrawal is allowed: at retirement (age 58), after 2 months of unemployment, or on leaving India permanently. Partial withdrawal is allowed for: home purchase/construction (after 5 years service, up to 90% of balance), medical treatment (up to 6 months' salary), marriage (after 7 years, up to 50% of own contribution), education (after 7 years), and natural calamity. Premature full withdrawal (before 5 years) is taxable — TDS of 10% with PAN, 30% without PAN.

EPF falls under EEE (Exempt-Exempt-Exempt): contributions up to ₹1.5L/year are deductible under 80C; interest is tax-free up to ₹2.5 lakh annual employee contribution (beyond ₹2.5L, interest on excess is taxable, applicable to high earners); maturity amount is tax-free after 5 years of continuous service. If you withdraw before 5 years (or 5 years of service across employers with PF transfer), the amount becomes taxable.

Yes — Voluntary Provident Fund (VPF) allows you to contribute above the mandatory 12% up to 100% of Basic + DA, earning the same EPF interest rate (8.25%). VPF contributions qualify for 80C deduction and have EEE tax treatment. However, contributions above ₹2.5 lakh/year to EPF + VPF together will have taxable interest on the excess from FY 2021-22 onwards. VPF is an excellent low-risk, high-return savings option for tax-bracket savers.