The EPF calculator has genuine, high volume, and one thing most simple calculators get wrong: your employer’s 12% contribution doesn’t all go into your EPF account. Most of it is actually split between your EPF and a separate pension scheme (EPS) — and that split changes based on your salary.
[Use the EPF Calculator above ↑] — enter your salary and age to see your real projected corpus at retirement.
The EPF interest rate for FY 2025-26 is 8.25% per annum, applicable to all contributions made during the financial year. Interest is calculated monthly on your running balance, but credited to your account only once a year, on 31 March.
Both you and your employer contribute 12% of your Basic + DA each month — but your employer’s 12% doesn’t fully go into your EPF account:
This means if your Basic + DA is above ₹15,000, a larger share of your employer’s contribution actually flows into your EPF account (since the EPS portion is capped), not less — a detail worth understanding since it directly affects how fast your EPF corpus grows relative to your pension entitlement.
Worth noting: there’s a pending Supreme Court directive that may raise the EPS wage ceiling from ₹15,000 to as high as ₹25,000 — this calculator uses the established ₹15,000 figure since the change isn’t yet consistently confirmed across sources, but it’s worth watching for.
EPF is one of the few genuinely EEE (Exempt-Exempt-Exempt) instruments in India — your contribution qualifies for Section 80C, the interest is tax-free, and withdrawal after 5 years of continuous service is also tax-free. The one exception: if your own contribution exceeds ₹2.5 lakh in a financial year (₹5 lakh for government employees), interest earned on the amount above that threshold becomes taxable.
| Feature | EPF | NPS | PPF |
|---|---|---|---|
| Current return | 8.25% (fixed) | Market-linked (variable) | 7.1% (fixed) |
| Who contributes | Employee + employer | Employee (+ employer, optional) | Self only |
| Tax treatment | EEE (fully exempt) | EEE on Tier 1, with some conditions | EEE (fully exempt) |
| Access | Salaried employees only | Available to everyone | Available to everyone |
| Liquidity | Withdrawable on job change/retirement | Locked until 60, with partial exceptions | 15-year lock-in, partial withdrawal from year 7 |
EPF’s guaranteed rate and mandatory employer match make it the strongest base layer of retirement savings for salaried employees — see our PPF calculator if you want to build a parallel tax-free corpus with your own additional savings.
What is the current EPF interest rate?
8.25% per annum for FY 2025-26, calculated monthly on your running balance and credited annually on 31 March.
Does all of my employer’s 12% go into my EPF account?
No — 8.33% of your employer’s contribution (capped at ₹1,250/month) goes to the Employees’ Pension Scheme (EPS), not your EPF balance. Only the remaining portion adds to your EPF corpus.
Is EPF withdrawal taxable?
No, if you’ve completed 5 years of continuous service. Withdrawals before that may be taxable, with some exceptions.
Can I contribute more than 12% to my EPF?
Yes, through Voluntary Provident Fund (VPF) — any amount above the standard rate still earns the EPF interest rate, though interest on your own contributions above ₹2.5 lakh/year becomes taxable.
See also our in-hand salary calculator and PPF calculator for more retirement planning tools.
