PF Calculator (EPF) - Provident Fund Calculator
Calculate your EPF (Employees' Provident Fund) contributions, interest, and maturity corpus. Free PF calculator with year-wise breakdown and tax implications.
PF Calculator
📊 PF Calculation Formula
How is PF calculated?
Monthly Contributions
- Employee PF = 12% of Basic Salary (capped at ₹1,800/month)
- Employer PF = 12% of Basic Salary (capped at ₹1,800/month)
- Total Monthly PF = Employee PF + Employer PF (max ₹3,600/month)
Interest Calculation
- Interest Rate: 8.5% per annum (current EPF rate)
- Interest Credited: Annually (typically in April)
- Calculation: Interest on average balance during the year
- Compound Interest: Interest earned on accumulated balance
❓ Frequently Asked Questions (FAQ)
PF (Provident Fund) is calculated as 12% of your basic salary. Employee contributes 12% and employer also contributes 12%. However, PF contribution is capped at ₹1,800/month (12% of ₹15,000 basic salary) as per EPF regulations. So maximum PF contribution is ₹3,600/month (Employee ₹1,800 + Employer ₹1,800).
The current EPF interest rate is 8.5% per annum (as of 2024-25). Interest is credited annually to your PF account. The interest rate is set by the EPFO (Employees' Provident Fund Organisation) and may change each financial year.
Yes, EPF is mandatory for employees earning up to ₹15,000/month basic salary in organizations with 20+ employees. For employees earning more than ₹15,000/month, PF contribution is optional but many employers still deduct it. Employee and employer both contribute 12% of basic salary (capped at ₹1,800/month each).
You can withdraw PF in various situations: 1) Retirement (after 58 years), 2) Job change (after 2 months of unemployment), 3) Medical emergency, 4) Home loan repayment, 5) Marriage/education of children (partial withdrawal), 6) Permanent disability. Full withdrawal is allowed after retirement or 2 months of continuous unemployment.
PF withdrawal is tax-free if you have completed 5 years of continuous service. If you withdraw before 5 years, the employer's contribution and interest on it is taxable. However, your own contribution and interest on it is always tax-free. Tax is deducted at source (TDS) at 10% if you withdraw before 5 years.
EPF (Employees' Provident Fund) is for salaried employees - mandatory contribution (12% of basic salary), current interest rate 8.5%, employer also contributes. PPF (Public Provident Fund) is a voluntary savings scheme - open to everyone, fixed 15-year tenure, current interest rate around 8.7%, no employer contribution. Both qualify for tax deduction under Section 80C.
📚 Understanding Employees' Provident Fund (EPF) - Complete Guide 2026
What is EPF (Employees' Provident Fund)?
The Employees' Provident Fund (EPF) is a retirement savings scheme managed by the Employees' Provident Fund Organisation (EPFO) in India. It is one of the most important social security schemes for salaried employees, providing a disciplined way to save for retirement while enjoying tax benefits and employer contributions.
EPF is mandatory for employees working in organizations with 20 or more employees, where the employee earns a basic salary of up to ₹15,000 per month. Both the employee and employer contribute 12% of the basic salary to the EPF account, creating a substantial retirement corpus over time.
💰 Key Features of EPF
- Mandatory Contribution: 12% of basic salary from employee and employer
- Interest Rate: 8.5% per annum (2024-25)
- Tax Benefits: Eligible for Section 80C deduction up to ₹1.5 lakh
- Withdrawal: Tax-free after 5 years of continuous service
- Loan Facility: Can avail loan against EPF balance
✨ Benefits of EPF
- Retirement Security: Creates substantial corpus for post-retirement
- Employer Contribution: Free money from employer (12% match)
- Tax-Free Growth: Interest earned is tax-free
- Disciplined Saving: Automatic deduction ensures regular savings
- Emergency Fund: Can withdraw for emergencies after certain conditions
🔍 How Does EPF Work? - Complete Breakdown
EPF Contribution Structure
EPF contributions work on a simple yet powerful structure that ensures both employees and employers contribute to building a retirement fund.
| Component | Employee Contribution | Employer Contribution | Total |
|---|---|---|---|
| EPF (Employee Provident Fund) | 12% of Basic Salary | 3.67% of Basic Salary | 15.67% |
| EPS (Employee Pension Scheme) | - | 8.33% of Basic Salary | 8.33% |
| EDLI & Admin Charges | - | 0.50% + Admin Fees | ~0.50% |
| Total Monthly Contribution | 12% | 12% | 24% of Basic Salary |
💡 EPF Interest Rate & Calculation Method
Current EPF Interest Rate (2024-25)
The current EPF interest rate is 8.5% per annum, which is one of the highest returns for a risk-free investment in India. This rate is decided by the EPFO Central Board of Trustees and is typically announced at the beginning of each financial year.
📈 How EPF Interest is Calculated
- Interest is calculated on the monthly running balance
- Interest is credited to the account annually (typically in April)
- Calculation uses the average balance method
- Interest compounds annually, leading to significant growth over time
- Interest earned is tax-free if withdrawn after 5 years
📊 EPF Interest Rate History
- 2024-25: 8.5% per annum
- 2023-24: 8.25% per annum
- 2022-23: 8.15% per annum
- 2021-22: 8.10% per annum
- 2020-21: 8.50% per annum
💼 EPF vs PPF - Key Differences Explained
Understanding the difference between EPF (Employees' Provident Fund) and PPF (Public Provident Fund) is crucial for making informed financial decisions. While both are government-backed savings schemes, they serve different purposes and have distinct features.
| Feature | EPF (Employees' Provident Fund) | PPF (Public Provident Fund) |
|---|---|---|
| Eligibility | Salaried employees only | Any Indian citizen |
| Contribution | Mandatory (12% of basic salary) | Voluntary (₹500 to ₹1.5 lakh/year) |
| Employer Contribution | Yes (12% matching) | No |
| Interest Rate (2024-25) | 8.5% per annum | 7.1% per annum |
| Lock-in Period | Till retirement (58 years) or job change | 15 years (mandatory) |
| Tax Benefits | Section 80C (up to ₹1.5 lakh) | Section 80C (up to ₹1.5 lakh) |
| Withdrawal | After retirement, job change, or emergencies | Partial after 6 years, full after 15 years |
📋 EPF Withdrawal Rules & Conditions 2025
When Can You Withdraw EPF?
EPF withdrawal is subject to specific rules and conditions. Understanding these rules is essential to avoid unnecessary tax implications and penalties.
✅ Tax-Free Withdrawal Scenarios
- After 5 Years: Complete withdrawal is tax-free
- Retirement: Withdrawal at 58 years is completely tax-free
- Permanent Disability: Full withdrawal allowed, tax-free
- After 2 Months Unemployment: Full withdrawal after job loss
⚠️ Taxable Withdrawal Scenarios
- Before 5 Years: Employer's contribution + interest is taxable
- TDS Applicable: 10% TDS if withdrawal exceeds ₹50,000
- Form 15G/15H: Submit to avoid TDS if income is below taxable limit
- Partial Withdrawal: Specific rules apply for different purposes
Common EPF Withdrawal Reasons
- Medical Emergency: For treatment of self, spouse, children, or parents
- Home Loan Repayment: Can withdraw for home loan EMI or down payment
- Home Purchase/Construction: Up to 90% of balance or cost of property
- Marriage/Education: Partial withdrawal for self, spouse, or children
- Unemployment: Full withdrawal after 2 months of unemployment
- Retirement: Complete withdrawal at 58 years of age
- Pre-Retirement: 90% withdrawal one year before retirement (at 57 years)
- Permanent Disability: Full withdrawal allowed immediately
💰 Tax Benefits of EPF - Section 80C Explained
EPF Tax Benefits Under Section 80C
EPF contributions offer significant tax benefits under Section 80C of the Income Tax Act, making it one of the most tax-efficient investment options for salaried employees.
Tax Deduction
Employee contribution up to ₹1.5 lakh per year qualifies for Section 80C deduction
Tax-Free Interest
Interest earned on EPF is completely tax-free, unlike fixed deposits
Tax-Free Withdrawal
Complete withdrawal is tax-free after 5 years of continuous service
📱 How to Check EPF Balance Online - UAN Portal Guide
EPF Balance Check Methods
Checking your EPF balance regularly is important to track your retirement savings and ensure accurate contributions. Here are the easiest ways to check your EPF balance:
🌐 Online Methods
- EPFO Portal: Login at epfindia.gov.in using UAN and password
- UAN Member Portal: Unified Portal for accessing EPF account details
- UMANG App: Government's Unified Mobile Application
- EPFO Mobile App: Official EPFO mobile application
📞 Offline Methods
- Missed Call: Give missed call to 011-22901406 from registered mobile
- SMS: Send EPFOHO UAN ENG to 7738299899
- Employer: Check with HR or payroll department
- PF Passbook: Download from UAN portal
💎 VPF (Voluntary Provident Fund) - Complete Guide 2026
What is VPF (Voluntary Provident Fund)?
VPF (Voluntary Provident Fund) is an extension of EPF that allows employees to voluntarily contribute more than the mandatory 12% of their basic salary to their Provident Fund account. Unlike EPF contributions which are mandatory and capped, VPF gives you the flexibility to save more for retirement while enjoying the same tax benefits and interest rates as EPF.
✨ Key Features of VPF
- Voluntary Contribution: You can contribute any amount above the mandatory 12%
- Same Interest Rate: Earns same 8.5% interest as EPF (tax-free)
- Tax Benefits: Contributions qualify for Section 80C deduction up to ₹1.5 lakh/year
- No Upper Limit: No maximum cap on VPF contributions (unlike EPF's ₹1,800/month cap)
- Flexible: You can start or stop VPF contributions anytime
- Safe Investment: Backed by the government, making it a secure retirement option
💰 VPF Benefits & Advantages
- Higher Returns: Earn tax-free 8.5% interest on additional savings
- Tax Deduction: VPF contributions reduce taxable income under Section 80C
- Tax-Free Interest: All interest earned is completely tax-free
- Compounding: Power of compound interest over long-term
- Retirement Corpus: Builds significant retirement fund with disciplined saving
- Emergency Fund: Can be withdrawn for emergencies (subject to EPF withdrawal rules)
📊 How VPF Works
VPF contributions are deducted from your salary along with EPF contributions. The key difference is that VPF is completely voluntary - you decide how much extra you want to contribute each month.
- Deduction: VPF amount is deducted from your salary every month
- Account: Money goes to the same EPF account (not a separate account)
- Interest: Earns same 8.5% interest as EPF contributions
- Calculation: Interest calculated on total balance (EPF + VPF together)
💡 Who Should Opt for VPF?
VPF is ideal for employees who want to save more for retirement while enjoying tax benefits:
- High Earners: Those with surplus income after expenses
- Tax Savers: Want to maximize Section 80C benefits
- Conservative Investors: Prefer safe, guaranteed returns
- Retirement Focused: Building substantial retirement corpus
- Long-term Savers: Planning for 10+ years of savings
🏦 EPS (Employee Pension Scheme) - Pension Benefits Guide 2026
What is EPS (Employee Pension Scheme)?
EPS (Employee Pension Scheme) is a social security scheme that provides pension benefits to employees after retirement. A portion of your employer's EPF contribution (8.33% of basic salary, capped at ₹1,250/month) goes to EPS, ensuring you receive a monthly pension after retirement or upon meeting specific conditions.
🏛️ EPS Contribution Details
- Source: 8.33% of employer's EPF contribution goes to EPS
- Employee Contribution: None - EPS is fully funded by employer
- Maximum Contribution: ₹1,250/month (8.33% of ₹15,000)
- Pensionable Salary Cap: ₹15,000/month (used for pension calculation)
- Separate Account: EPS contributions go to a separate pension fund
💵 EPS Pension Calculation
EPS pension is calculated using the formula:
- Pensionable Salary: Average of last 12 months salary (capped at ₹15,000)
- Service Years: Total years of EPF membership (minimum 10 years)
- Minimum Pension: ₹1,000/month (as of 2024)
- Maximum Pension: Based on formula calculation
📅 EPS Pension Eligibility & Withdrawal
- Normal Pension: At 58 years of age with minimum 10 years of service
- Early Pension: At 50 years with 10+ years service (reduced pension)
- Permanent Disability: Pension available regardless of service period
- Widow/Widower Pension: Spouse receives pension after member's death
- Children Pension: Up to 2 children receive pension till 25 years of age
- Withdrawal Option: Can withdraw EPS amount if service less than 10 years
💼 Key Points About EPS
- No Employee Contribution: Entire EPS contribution comes from employer
- Pension Account: Separate from EPF account - cannot be withdrawn like EPF
- Lifetime Pension: Pension continues for lifetime (subject to conditions)
- Indexed to Inflation: Pension amounts may be revised by government
- Nomination: Important to nominate beneficiaries for family pension
- Transfer Facility: EPS account can be transferred when changing jobs
📋 EPS vs EPF - Understanding the Difference
| Aspect | EPF (Employee Provident Fund) | EPS (Employee Pension Scheme) |
|---|---|---|
| Purpose | Retirement savings fund (withdrawal allowed) | Pension scheme (monthly pension after retirement) |
| Employee Contribution | 12% of basic salary (mandatory) | None - fully funded by employer |
| Employer Contribution | 12% of basic salary (3.67% goes to EPF, 8.33% to EPS) | 8.33% of basic salary (from employer's 12%) |
| Withdrawal | Can be withdrawn partially or fully (subject to rules) | Cannot be withdrawn - only pension is paid |
| Benefit | Lump sum withdrawal + interest | Monthly pension for lifetime |
| Tax Treatment | Tax-free after 5 years of continuous service | Pension is taxable as per income tax rules |
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Calculate Tax →⚠️ Disclaimer & Important Notes
- This calculator provides estimates only. Actual PF calculations may vary based on your employer's policies.
- PF interest rate (8.5%) is as of 2024-25 and may change in future financial years.
- PF contribution is capped at ₹1,800/month (12% of ₹15,000 basic salary) as per EPF regulations.
- Interest calculations are estimates based on average balance method.
- Always check your PF passbook or UAN portal for accurate balance.