8.25% p.a., confirmed for FY 2025-26, 239th CBT meeting March 2026
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PF Calculator for India

Find out your monthly EPF contribution, your employer's share, and how your PF corpus will look at retirement. Based on EPFO rules.

No login required
Updated for FY 2025-26
EPS apportionment included

EPF Contribution Calculator

8.25% p.a., confirmed at 239th CBT meeting, March 2026
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yrs
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%

Enter your basic salary and hit Calculate to see your EPF breakdown.

Monthly EPF Account Credit
₹0
Employee + employer EPF portion
Employee to EPF account
₹0
12% of basic
Employer to EPF account
₹0
12% minus EPS
Employer to EPS (pension)
₹0
Capped at ₹1,250/mo
Employer total cost
₹0
EPF + EPS = 12% of basic
Your share of EPF account credit 50%
Section 80C eligible: ₹0/yr
Corpus Projection

How your PF grows over time

Calculated at the current EPF interest rate of 8.25% p.a. Interest accrues monthly and is credited at year-end as per EPFO norms.

Enter your salary above and click Calculate to see your corpus projection.

Assumes consistent salary, no increments, and full EPFO compliance. Actual corpus may vary. EPS is excluded as it is held in a separate pension fund.

How EPF Works

How EPF Contribution is Calculated in India

Both employee and employer contribute 12% of basic salary each month, subject to the statutory wage ceiling of ₹15,000. Under Para 26A of the EPF Scheme 1952, where an employee's basic salary exceeds ₹15,000, the mandatory contribution for both employee and employer is capped at the amounts payable on ₹15,000. That is, ₹1,800/month each. Contributions on actual basic above ₹15,000 are voluntary, requiring a joint request under Para 26(6).

The employer's 12% is not deposited whole into the EPF account. It is split between two schemes: 8.33% of eligible wages (capped at ₹1,250/month) goes to the Employee Pension Scheme (EPS), and the remainder goes to the EPF account. The employee's full contribution is credited entirely to EPF.

Monthly Contribution Breakdown

Employee
12% of basic, max ₹1,800/mo
Fully credited to EPF account
Employer (EPS)
8.33% of basic, max ₹1,250/mo
Goes to pension fund, not EPF
Employer (EPF)
12% minus EPS amount
Credited to EPF account
Interest
8.25% p.a. (FY 2025-26)
Calculated monthly, credited annually

Who must register for EPF

EPFO coverage is mandatory for establishments with 20 or more employees. Eligible employees earning up to ₹15,000 basic must be enrolled; those earning more may also be enrolled voluntarily.

VPF: Voluntary extra contribution

Employees can contribute more than the mandatory 12% through Voluntary Provident Fund. The additional amount earns the same 8.25% rate and qualifies under Section 80C, up to the overall ₹1.5 lakh limit.

Gratuity and EPF: separate entitlements

EPF is distinct from gratuity. Gratuity accrues separately after five continuous years of service (or one year for fixed-term workers under the new Labour Codes). Both are often managed together by HR software.

Tax treatment

Employee contributions qualify under Section 80C. Interest earned on contributions up to ₹2.5 lakh per year (₹5 lakh for government employees) is tax-free. Maturity amount after five years of service is also exempt.

FAQ

Common questions about PF in India

The EPF interest rate for FY 2025-26 is 8.25% per annum, confirmed at the 239th meeting of the Central Board of Trustees on March 2, 2026. It awaits formal Ministry of Finance ratification before being credited to accounts. Interest is calculated on the monthly running balance and credited annually at the close of the financial year.
No. The employer's 12% is split between two schemes. Up to ₹1,250 per month goes to the Employee Pension Scheme (EPS), and the rest is deposited into the EPF account. At the statutory floor (₹15,000 wage ceiling), the employer contributes ₹550/month to EPF and ₹1,250/month to EPS. Where a company voluntarily contributes on actual basic above ₹15,000, the EPF portion rises accordingly while EPS stays capped at ₹1,250.
The statutory wage ceiling for EPF contributions is ₹15,000 per month. Employees earning up to this amount must be compulsorily enrolled. For those earning above ₹15,000, mandatory contributions are capped at amounts payable on ₹15,000 (i.e., ₹1,800/month each for employee and employer). Many companies voluntarily contribute on actual basic salary under Para 26(6) of the EPF Scheme, which requires a joint employee-employer request. The EPS cap of ₹1,250/month remains fixed regardless of the wage basis chosen.
Full withdrawal is permitted on retirement, or if you have been unemployed for two consecutive months. Partial withdrawals are allowed earlier for specific purposes such as medical treatment, home purchase, home loan repayment, and children's higher education or marriage, subject to the tenure and balance conditions set by EPFO. Withdrawals made before five years of continuous service are taxable.
The EPF Act mandates coverage for establishments with 20 or more employees. Some specific industries may be covered even below that threshold. Smaller establishments are not prohibited from enrolling voluntarily. Once an establishment crosses 20 employees and is covered, it stays covered even if headcount later drops below 20.
PF is calculated on basic salary plus Dearness Allowance (DA), not on gross salary. Other allowances such as HRA, travel allowance, and performance bonuses are generally excluded. This is why the ratio of basic to gross salary matters in payroll structuring, and why the upcoming Labour Codes propose a minimum 50% basic pay rule to curb structures that dilute PF-eligible wages.
Interest is computed monthly on the closing balance of your EPF account but credited only once at the end of the financial year on 31 March. The monthly interest rate is 8.25% divided by 12, which is 0.6875%. So if your EPF balance at the end of a given month is ₹1,00,000, the interest for that month is ₹687.50. This amount is added to subsequent months and the full year’s interest is posted to your account after the financial year closes.
Your EPF balance is portable. When you change jobs, you can transfer your existing PF balance to the new employer’s account using your UAN (Universal Account Number) through the EPFO member portal. The UAN stays constant across all employers. If you withdraw before completing five years of continuous service, the amount is taxable. Transfers are not taxable and do not reset your service count for withdrawal eligibility.
Partial withdrawal is permitted for specific needs: medical treatment for self or family, purchase or construction of a house, repayment of a home loan, children’s higher education or marriage, and others. Each purpose has its own eligibility criteria around years of service and the proportion of balance that can be withdrawn. Full withdrawal is allowed only on retirement or after remaining unemployed for two consecutive months. Amounts withdrawn before five continuous years of service attract income tax and TDS.

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