PF Calculator

Employee Provident Fund is a retirement plan administered by the Employees' Provident Fund Organisation (EPFO). The employee and the employer must deposit 12% of the employee's basic salary, plus dearness allowance, per month in equal shares. The entire amount contributed by the employee will go towards his/her EPF account. In contrast, 8.33% of the amount deposited by the employer will go towards the Employee Pension Scheme (EPS), and the remaining 3.67% will be put towards EPF.

As per 2024 estimates, EPFO administers over Rs 18 lakh crore for 67 million active subscribers.

PF contribution is calculated on basic salary + dearness allowance. The statutory ceiling for PF is Rs 15,000/month (basic + DA), but many companies contribute to PF on the actual basic salary.

EPFO declares the interest rate annually. The rate has been declining over the past decade but stabilized around 8.15% to 8.25% in recent years, which is still higher than most fixed deposits and debt mutual funds on a tax-adjusted basis.

• Interest is calculated monthly but credited annually at the end of the financial year.
• Interest on EPF contributions above Rs 2.5 lakh per year is taxable since FY 2021-22.
• PF interest is tax-free on contributions up to Rs 2.5 lakh/year (Rs 5 lakh if the employer doesn't contribute to any other retirement scheme).

PF withdrawal rules vary based on the reason and your employment status.

• Full withdrawal on retirement: You can withdraw the entire PF balance at age 58. If you've contributed for 10+ years, you also get a monthly EPS pension.
• Withdrawal after 2 months of unemployment: If you leave a job and remain unemployed for 2 months, you can withdraw the full PF balance. You'll need to submit a signed declaration that you haven't found new employment.
• Partial withdrawal (advance): Allowed for specific purposes while still employed. Marriage (50% after 7 years), medical emergency (up to 6 months' salary), home purchase (up to 36 months' salary after 5 years), and education (50% after 7 years).
• Transfer between employers: The easiest option when changing jobs. Submit Form 13 through your new employer's EPFO portal. It takes 10-20 days. Your PF balance, including employer contributions, transfers seamlessly.
• 75% partial withdrawal after 1 month: A 2020 rule allows you to withdraw up to 75% of your PF balance if you've been unemployed for 1 month. The remaining 25% can be withdrawn after 2 months.

Voluntary Provident Fund or VPF lets you contribute more than the mandatory 12% of your basic salary to your PF account. You can contribute up to 100% of your basic salary. The VPF earns the same interest rate as EPF (8.25% for FY 2024-25) and gets the same tax treatment. It's one of the safest high-return investment options for salaried employees, especially for those in the 30% tax bracket. However, since FY 2021-22, interest on total EPF + VPF contributions exceeding Rs 2.5 lakh per year is taxable. So if your regular PF contribution is Rs 2 lakh, only Rs 50,000 of the additional VPF contribution earns tax-free interest.