Your details
How your PF is deducted
Your EPF at retirement
EPF balance by year
Year-wise breakdown
How EPF contributions are split
Every month, 12% of your basic pay plus dearness allowance is deducted from your salary and put into your EPF account. Your employer pays another 12%, but that part is split: 8.33% of wages up to the ceiling goes to the Employees' Pension Scheme (EPS), and only the remainder lands in your EPF balance. The EPS money is not part of your withdrawable PF; it funds a monthly pension instead.
| Basic + DA a month | Your 12% | Employer to EPS (8.33%) | Employer to EPF | Total into EPF |
|---|---|---|---|---|
| ₹15,000 | ₹1,800 | ₹1,250 | ₹550 | ₹2,350 |
| ₹25,000 or more (on the ceiling) | ₹3,000 | ₹2,083 | ₹917 | ₹3,917 |
| ₹50,000 (PF on full basic) | ₹6,000 | ₹2,083 | ₹3,917 | ₹9,917 |
The employer also pays 0.5% for EDLI insurance and a small admin charge; neither goes into your account.
What changed in 2026: the ₹25,000 wage ceiling
From 17 September 2026 the statutory EPF wage ceiling rose from ₹15,000 to ₹25,000 a month. If your employer contributes on the ceiling, your PF deduction goes up from ₹1,800 to as much as ₹3,000 a month and the employer's EPS share from ₹1,250 to ₹2,083, so take-home pay falls a little while retirement savings grow. The government's own 1.16% EPS contribution for eligible members stays limited to wages of ₹15,000. Use the salary calculator to see the effect on your in-hand pay.
How EPF interest is calculated
EPFO works out interest every month on the running balance at one-twelfth of the yearly rate, then adds the year's total to your account at the end of the financial year. For FY 2025-26 the rate is 8.25%. Interest keeps compounding, so in a long career most of the final corpus is interest rather than contributions.
Worked example: ₹30,000 basic, age 25 to 58
Basic pay of ₹30,000 a month, 7% raises every year, 8.25% interest, starting from zero:
| Setup | EPF at 58 | Of which interest |
|---|---|---|
| PF on the ₹25,000 ceiling | About ₹75.5 lakh | About ₹60 lakh |
| PF on full basic pay | About ₹2.74 crore | About ₹1.80 crore |
In both cases about ₹8.2 lakh goes to EPS over the career, and with 33 years of service the formula gives an EPS pension of about ₹7,500 a month at the ₹15,000 salary cap.
EPS pension formula
Monthly pension = pensionable salary × pensionable service ÷ 70. Pensionable salary is the average monthly wage over your last 60 months, capped at the pension ceiling. Members with at least 20 years of service get 2 extra years added. You need 10 years of service to qualify, the full pension starts at 58 (a reduced pension is possible from 50), and the minimum is ₹1,000 a month.
Tax on EPF
- Your contribution qualifies for the Section 80C deduction under the old tax regime (up to ₹1.5 lakh with other investments).
- Interest is tax-free on your own contributions up to ₹2.5 lakh a year (₹5 lakh if the employer does not contribute). Interest on anything above that is taxed every year.
- Employer contributions to EPF, NPS and superannuation above ₹7.5 lakh a year in total are taxable.
- Withdrawals are tax-free after 5 years of continuous service. Earlier withdrawals are taxable, with 10% TDS on amounts over ₹50,000 if you give your PAN.
Frequently asked questions
How is EPF calculated?
You pay 12% of your basic pay plus DA into EPF every month. Your employer also pays 12%, but 8.33% of wages up to ₹25,000 (at most ₹2,083 a month) goes to the Employees' Pension Scheme (EPS) and only the rest goes into your EPF account. Interest is worked out every month on the running balance and added to the account once a year.
What is the EPF interest rate for 2025-26?
8.25% a year. EPFO notified the rate for FY 2025-26 in its circular of 1 July 2026, the same rate as the previous two years. The calculator uses 8.25% by default; change it to see what a higher or lower rate would do.
What is the new EPF wage ceiling?
₹25,000 a month from 17 September 2026, up from ₹15,000. If your employer contributes on the ceiling, your share is now up to ₹3,000 a month instead of ₹1,800, and the employer's EPS share is up to ₹2,083 instead of ₹1,250. The government's 1.16% EPS contribution stays capped at wages of ₹15,000.
How much PF will I get on a ₹30,000 basic salary?
If you start at 25 with a ₹30,000 basic, get 7% raises every year and retire at 58, PF on the ₹25,000 ceiling grows to about ₹75 lakh at 8.25%. If your employer deducts PF on your full basic, the same career builds about ₹2.74 crore, because the contribution rises with every raise.
How is the EPS pension calculated?
Monthly pension = pensionable salary × pensionable service ÷ 70. Pensionable salary is the average of your last 60 months' wages, capped (₹15,000 under the long-standing rule). Members with 20 or more years of service get 2 extra years added. You need at least 10 years of service, and full pension starts at 58. The minimum pension is ₹1,000 a month.
Is EPF interest taxable?
Interest is tax-free unless your own contributions (EPF plus VPF) are more than ₹2.5 lakh in a year, or ₹5 lakh if your employer does not contribute. Interest on the part above that limit is taxed at your slab rate every year. The final withdrawal is tax-free after 5 years of continuous service.
What is VPF and is it worth it?
Voluntary Provident Fund lets you put more than 12% of your basic into EPF, up to 100%. It earns the same 8.25% interest, which is higher than most bank FDs and PPF, and the employer does not have to match it. Keep the ₹2.5 lakh yearly limit in mind, since interest above it is taxable.