PF Calculator

PF Calculator

Monthly Salary (Basic + DA)₹50,000
Current Age28
EPF Contribution12%
Annual Salary Increase5%

Estimated Corpus

₹2,05,50,560

Monthly Employee PF₹6,000
Monthly Employer PF₹1,835
Interest Rate8.25% p.a.
Retirement Age58 years
Years to Retirement30 years

What Is EPF (Employee Provident Fund)?

The Employee Provident Fund (EPF) is a retirement savings scheme managed by the Employees' Provident Fund Organisation (EPFO) in India. Both the employee and employer contribute 12% of the employee's basic salary + dearness allowance every month. The employee's contribution goes entirely to the EPF account. The employer's 12% is split: 8.33% goes to the Employee Pension Scheme (EPS) and 3.67% goes to EPF. As of 2024, EPFO manages over Rs 18 lakh crore in assets for 67 million active subscribers, making it one of the largest social security organizations in the world.

How Is PF Calculated? Employer and Employee Breakdown

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 PF on actual basic salary.

ContributionRateOn AmountMonthly (Rs 15K basic)Monthly (Rs 40K basic, if on actual)
Employee to EPF12%Basic + DARs 1,800Rs 4,800
Employer to EPF3.67%Basic + DARs 550Rs 1,468
Employer to EPS8.33%Basic + DA (capped at Rs 15K)Rs 1,250Rs 1,250
Employer Admin Charges0.50%Basic + DARs 75Rs 200
EDLI (Insurance)0.50%Basic + DA (capped at Rs 15K)Rs 75Rs 75
Total Employer Cost13.00%+Basic + DARs 1,950Rs 2,993

PF Interest Rate History (Last 5 Years)

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 employer doesn't contribute to any other retirement scheme).
Financial YearInterest RateChange from Previous Year
FY 2024-258.25%+0.10%
FY 2023-248.25%+0.10%
FY 2022-238.15%-0.10%
FY 2021-228.10%-0.40%
FY 2020-218.50%No change
FY 2019-208.50%-0.15%

PF Withdrawal Rules: When Can You Withdraw?

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), education (50% after 7 years).
  • Transfer between employers: The easiest option when changing jobs. Submit Form 13 through your new employer's EPFO portal. 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.

What Is VPF (Voluntary Provident Fund)?

VPF or Voluntary Provident Fund 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 additional VPF contribution earns tax-free interest.

Frequently  Asked  Questions

What is EPF and how is the contribution calculated?

The Employees' Provident Fund (EPF) is a retirement savings scheme under the EPF & MP Act, 1952, mandatory for organizations with 20 or more employees. Both the employee and employer contribute 12% of the employee's basic salary + dearness allowance each month. The employer's 12% is split — 8.33% goes to the Employees' Pension Scheme (EPS) and the remaining 3.67% to the EPF account.

What is the current EPF interest rate?

The EPF interest rate is set annually by the EPFO (Employees' Provident Fund Organisation) and approved by the government. For FY 2023-24, the interest rate is 8.25% per annum, compounded monthly. The interest is calculated on the monthly running balance and credited to the EPF account at the end of the financial year.

When can an EPF member withdraw their PF corpus?

Full EPF withdrawal is permitted on retirement (at age 58), on reaching 54 years of age with the intent to retire within a year, or after 2 months of unemployment. Partial withdrawal is allowed for specific purposes such as housing (after 5 years), marriage (after 7 years), medical treatment, higher education, or natural calamity, subject to limits defined by the EPFO.

What is the difference between EPF and EPS?

EPF (Employees' Provident Fund) is the main provident fund account where both employee and employer contributions accumulate with interest. EPS (Employees' Pension Scheme) is funded entirely by the employer's contribution (8.33% of basic salary, capped at ₹1,250/month for a ₹15,000 salary cap) and provides a monthly pension after retirement. EPS does not earn interest — it pays a pension based on years of service and average salary.

Is EPF interest taxable?

EPF interest is tax-free up to an annual employee contribution of ₹2.5 lakh. For contributions above ₹2.5 lakh per year (₹5 lakh for government employees), the interest earned on the excess amount is taxable under the 'Income from other sources' head. This rule applies from FY 2021-22 onwards. The maturity amount and withdrawals after 5 years of continuous service remain fully tax-exempt.
Adithyan RKWritten by Adithyan RK
Surya N
Fact-checked by Surya N
Published on: 25 Mar 2026Last updated: 4 Apr 2026
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