EPF PF Calculator

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YTB-0068 · Financial › Salary & Payroll

EPF / PF Calculator — FY 2026-27

Calculate EPF corpus at retirement — 8.25% interest (FY 2025-26 rate, government ratified)

Current Basic Salary₹40,000/month
Monthly Employee Contribution
Monthly Employer Contribution (EPF only)
Total Monthly Contribution (both)
Total Contributions over Period
Interest Earned
EPF Corpus at Retirement
Monthly Pension (EPS estimate)
Total Contributions
Interest Earned

8.25% for the Third Consecutive Year — Why EPF Still Beats Most Safe Investments

On March 2, 2026, the Central Board of Trustees (CBT) chaired by Union Labour Minister Mansukh Mandaviya recommended an EPF interest rate of 8.25% for FY 2025-26 — the third consecutive year at this rate. The Finance Ministry formally ratified this on June 18, 2026, with interest credited to over 7 crore subscriber accounts. Compare this: a bank FD offers 7–7.5%, PPF offers 7.1%, and the Senior Citizen Savings Scheme pays 8.2%. EPF at 8.25% beats most of these — with zero market risk, EEE tax status (exempt at contribution, growth, and withdrawal), and the backing of the Government of India. For a salaried employee, EPF is one of the best risk-free return instruments available — and it's mandatory for most.

EPF Contribution Split — Who Pays What

Contribution TypeRateGoes ToTax Treatment
Employee EPF12% of basicEPF account (earns 8.25%)Deductible u/s 80C (old regime)
Employer EPF3.67% of basicEPF account (earns 8.25%)Not taxable in employee's hands
Employer EPS8.33% of basic (max ₹1,250/month)EPS pension fundNot taxable; used for pension
EDLI (employer)0.5% of basic (max ₹75/month)Life insurance fundInsurance benefit; not EPF corpus

When people say "employer contributes 12%," that 12% is actually split: 8.33% goes to EPS (Employee Pension Scheme) and only 3.67% goes to your actual EPF account. Only the EPF portion earns the 8.25% interest — the EPS portion funds your pension. For employees with basic above ₹15,000, EPS contribution is capped at 8.33% of ₹15,000 = ₹1,250/month.

The ₹15,000 Wage Ceiling — What It Means Practically

Under the EPF Act, the statutory wage ceiling for EPF is ₹15,000/month basic. This means:

  • If your basic is ₹40,000, your employer must contribute at least 12% of ₹15,000 = ₹1,800/month (not 12% of ₹40,000)
  • Many companies apply EPF on the full basic (higher contribution, better retirement corpus)
  • You can opt out of EPF entirely if your basic exceeds ₹15,000 and you were never previously enrolled

EEE Status — Why EPF Is Tax-Efficient

  • Exempt at contribution: Employee EPF deductible under Section 80C (old regime)
  • Exempt at growth: Interest earned on EPF is tax-free
  • Exempt at withdrawal: After 5 years of continuous service, withdrawal is fully tax-free

Exception: EPF contribution above ₹2.5 lakh per year (employee only) earns taxable interest from FY 2021-22 onwards. For most salaried employees with basic under ₹1,73,611/month, this threshold is not a concern.

💡 EPF or NPS? EPF gives guaranteed 8.25% with EEE tax status. NPS offers potential for higher returns (equity exposure up to 75%) but returns are market-linked and only 60% is tax-free at retirement (40% must be used for annuity). For risk-averse employees, EPF is superior. For those who want equity exposure in retirement savings with the additional ₹50,000 deduction under 80CCD(1B) in the old regime, NPS is a complementary product — not a replacement for EPF.

FAQ

Can I check my EPF balance online?
Yes. Log in to the EPFO member portal at unifiedportal-mem.epfindia.gov.in using your Universal Account Number (UAN) and password. You can also use the UMANG app or give a missed call to 9966044425 from your registered mobile number to get your balance by SMS. Your UAN is printed on your payslip and should remain the same across all employers — always ensure your new employer links their establishment to your existing UAN rather than creating a new one.
When can I withdraw EPF without tax?
EPF withdrawal is completely tax-free if you have completed 5 years of continuous service (service across different employers counts if you transferred the PF). If you withdraw before 5 years, the employer contribution and interest are taxable. Partial withdrawals are allowed for specific purposes: home purchase, marriage, education, medical emergency — each with different conditions on amount and eligibility period. Partial withdrawals for approved purposes do not trigger the 5-year rule.
What is the EPS pension I can expect?
EPS (Employee Pension Scheme) provides a monthly pension from age 58. The formula: Monthly Pension = (Pensionable Salary × Pensionable Service) ÷ 70. Pensionable salary is capped at ₹15,000/month. For 30 years of service: ₹15,000 × 30 ÷ 70 = ₹6,428/month. This is why EPF alone rarely funds retirement — the EPS pension is modest and the EPF corpus must be invested wisely at withdrawal. Consider the EPF corpus as retirement capital to be deployed in senior citizen FDs (8.2%), SCSS (8.2%), or an annuity product.
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