PF (EPF) Calculator FY 2026-27
Calculate your monthly EPF contribution, employer share, and long-term corpus growth at 8.25% interest.
Enter Basic Salary
EPF is capped at ₹15,000 basic for mandatory contribution
Current EPF Rate: 8.25% p.a.
Interest is compounded annually and credited to your account each March.
EPF Contribution Breakdown
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How EPF Works — Complete Guide for Salaried Employees
The Employees' Provident Fund (EPF) is a mandatory retirement savings scheme under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. Both you and your employer contribute 12% of your basic salary every month. The EPFO manages this corpus and declares an annual interest rate — 8.25% for FY 2026-27.
What most employees don't realize: of the employer's 12%, only 3.67% goes to your EPF account. The remaining 8.33% goes to the Employee Pension Scheme (EPS) which funds your pension after retirement. EPS contributions are capped at 8.33% of Rs.15,000 = Rs.1,250/month regardless of your actual salary.
| Contribution | Rate | Where It Goes | Monthly Cap |
|---|---|---|---|
| Employee | 12% of basic | 100% to EPF account | Rs.1,800/month |
| Employer (EPF portion) | 3.67% of basic | Your EPF account | Rs.550/month |
| Employer (EPS portion) | 8.33% of basic | Pension Scheme (EPS) | Rs.1,250/month |
Caps apply when basic salary exceeds Rs.15,000/month (EPFO statutory wage ceiling). Employees may voluntarily contribute extra via VPF without employer match.
EPF Withdrawal Rules and Tax Treatment
EPF withdrawals are completely tax-free after 5 continuous years of service. If you withdraw before completing 5 years, the employer's contribution and interest become taxable income in the year of withdrawal. The employee's own contribution is always returned tax-free, but interest earned on it becomes taxable on early withdrawal.
From FY 2021-22, interest on EPF contributions exceeding Rs.2.5 lakh per year (employee's share only) is taxable. This primarily affects high-earners making Voluntary PF (VPF) contributions. For such employees, comparing post-tax EPF returns (8.25% pre-tax) with PPF (7.1%, fully tax-free) or NPS (market-linked, with 60% tax-free at maturity) is essential for optimising retirement savings.
PF Calculator FAQs
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