How EPF contributions are split
Employer: 12% of (basic + DA) → 8.33% of wages up to ₹15,000 to EPS (max ₹1,250), rest to EPF
Interest: 8.25% a year for FY 2025-26, calculated monthly, credited yearly
| Basic + DA / month | Employee EPF | Employer to EPS | Employer to EPF | Total to EPF |
|---|---|---|---|---|
| ₹15,000 | ₹1,800 | ₹1,250 | ₹550 | ₹2,350 |
| ₹25,000 | ₹3,000 | ₹1,250 | ₹1,750 | ₹4,750 |
| ₹50,000 | ₹6,000 | ₹1,250 | ₹4,750 | ₹10,750 |
Employers also pay small EDLI and admin charges that do not reach your account. If your employer calculates PF only on the ₹15,000 ceiling, both contributions are capped at ₹1,800 a month.
How the maturity projection works
Enter basic plus DA, contribution rates, expected annual increment, years to retirement and any existing balance. The calculator adds contributions each month, applies 8.25% interest monthly and raises your salary by the increment every year. EPFO credits interest annually, and future rates may differ, so read the result as a planning estimate.
Tax rules worth knowing
- Employee PF qualifies for 80C in the old regime; there is no PF deduction in the new regime.
- Interest on your own contributions above ₹2.5 lakh a year is taxable.
- Employer contributions to PF, NPS and superannuation together are tax-free up to ₹7.5 lakh a year.
- Withdrawals after five years of continuous service are tax-free; earlier withdrawals above ₹50,000 attract TDS.
Voluntary PF (VPF)
You can contribute more than 12% through VPF, up to 100% of basic plus DA. It earns the same 8.25% and has the same withdrawal rules, which makes it one of the better fixed-income options for salaried people, as long as you stay under the ₹2.5 lakh tax-free contribution limit.
Frequently asked questions
What is the current EPF interest rate?
8.25% a year for FY 2025-26, the same as the previous two years.
Is PF calculated on basic or gross salary?
On basic pay plus DA (and retaining allowance). Under the Labour Codes, if allowances exceed 50% of total pay, the excess is added back to wages for PF.
Is PF compulsory above ₹15,000 basic?
Membership is compulsory up to ₹15,000 of wages. Above that, employers may calculate PF on the full basic or cap it at ₹15,000, and new joiners earning above the limit can opt out.
How much goes to pension (EPS)?
8.33% of wages up to ₹15,000, so at most ₹1,250 a month, from the employer's share.