EPF Calculator

The Employees’ Provident Fund (EPF) is a retirement savings scheme run by the EPFO under the EPF & MP Act, 1952. It is mandatory for organisations with 20 or more employees, and any employee earning a basic wage up to ₹15,000 must be enrolled. Those earning more can also contribute voluntarily. Both you and your employer contribute every month, and the balance earns a government-declared interest rate.

You contribute 12% of your basic salary plus dearness allowance to EPF. Your employer also contributes 12%, but this is split — 8.33% goes to the Employees’ Pension Scheme (EPS, capped at ₹15,000 of wages) and only the remaining 3.67% lands in your EPF account. This calculator uses the 3.67% EPF portion of the employer share by default.

The EPFO declared an interest rate of 8.25% for FY 2024-25. The rate is reviewed annually by the Central Board of Trustees and notified by the government. Interest is calculated monthly but credited to your account once a year.

EPF enjoys EEE (Exempt-Exempt-Exempt) status — contributions qualify for deduction under Section 80C, the interest is tax-free, and the maturity corpus is exempt if you have completed 5 years of continuous service. Note that interest on employee contributions above ₹2.5 lakh in a year is taxable as per the 2021 budget rule.

Partial withdrawals are allowed for specific needs such as buying a home, medical treatment, marriage, or education, subject to conditions. Full withdrawal is permitted after two months of unemployment. Withdrawing before 5 years of service makes the amount taxable, so transferring your balance when you switch jobs is usually the better choice.

The Universal Account Number (UAN) is a 12-digit number issued by the EPFO that stays the same throughout your career, no matter how many times you change jobs. It links all your member IDs under one umbrella, so you can check your balance, download your passbook, and transfer your EPF online at the EPFO portal. Always share your existing UAN with a new employer instead of letting them create a fresh one.

The Voluntary Provident Fund (VPF) lets you contribute more than the mandatory 12% of basic — up to 100% of your basic plus DA — into your EPF account, earning the same EPFO interest rate (8.25% for FY 2024-25). The employer is not obliged to match the extra amount. VPF is one of the safest high-yield, debt-style options for salaried employees, but remember that interest on your own contributions above ₹2.5 lakh a year becomes taxable.

EPF is only for salaried employees with an employer co-contribution and currently pays 8.25%, while PPF is open to anyone, has a 15-year lock-in, a ₹1.5 lakh annual cap, and pays around 7.1%. Both enjoy EEE tax status. If you are salaried, prioritise EPF (and VPF) for the higher rate and employer match; use PPF as an additional, flexible tax-free bucket, especially if you are self-employed.

Your EPF does not lapse when you change jobs — using the same UAN, you should transfer the balance online to your new employer through the EPFO member portal. Avoid withdrawing it, because closing the account before 5 years of continuous service makes the withdrawal taxable and breaks your compounding. An inactive account still earns interest for a period, but transferring keeps everything in one place.