PF Calculator (EPF)
Updated August 2026 · Free · No sign-up
Calculate your EPF (Employee Provident Fund) — monthly contributions, the EPS split, and the compounding corpus your PF builds by retirement at the current interest rate.
Quick answer: EPF contribution = 12% of basic+DA from you + 12% from your employer (of which 8.33% goes to EPS pension, capped on ₹15,000). On ₹40,000 basic: you contribute ₹4,800/month, employer adds ₹4,800 — ₹9,600/month compounding at ~8.25%.
How EPF Contributions Split
| Component | Rate | Goes to |
|---|---|---|
| Employee contribution | 12% of basic+DA | EPF (your account, fully) |
| Employer contribution | 3.67% of basic+DA | EPF |
| Employer contribution | 8.33% of basic+DA (capped at ₹15,000 basic → max ₹1,250) | EPS (pension scheme) |
| Interest | ~8.25% (EPFO sets annually) | Credited yearly, compounds |
On basic above ₹15,000, the EPS cap means more of the employer's 12% lands in EPF: ₹40,000 basic → employer EPF = 4,800 − 1,250 = ₹3,550, EPS = ₹1,250.
Worked Example — The Compounding Story
₹40,000 basic, 25 years, 8.25% interest, 7% annual basic growth: monthly inflow starts at ₹9,600 and grows with salary — final corpus lands around ₹1.5-1.7 crore. The counter-intuitive part: interest earned in the final 5 years typically exceeds ALL contributions from the first 15 — never break the compounding by withdrawing at job changes.
Tax Treatment (EEE, Mostly)
- Contributions: employee share qualifies under 80C (old regime); employer share is tax-free within limits.
- Interest: tax-free — except interest on employee contributions above ₹2.5L/year (₹5L for government), which is taxable since 2021.
- Withdrawal: tax-free after 5 continuous years of service; earlier withdrawals face TDS above thresholds and taxability of components.
- VPF: you can voluntarily contribute beyond 12% — same interest, same tax rules (mind the ₹2.5L interest-taxability line).
Job Changes: Transfer, Never Withdraw
UAN makes transfers near-automatic — the new employer links the same UAN and the balance follows. Withdrawing at switches: breaks the 5-year tax clock, forfeits compounding, and (for EPS) fragments pensionable service. The FnF settlement does not include PF — it moves separately through EPFO.
EPS: The Pension Sliver
The 8.33% EPS stream builds a defined-benefit pension: roughly (pensionable salary × service years) ÷ 70, with pensionable salary capped at ₹15,000 for most members → max standard pension ≈ ₹7,500/month after 35 years. It's longevity insurance, not wealth — the EPF side is where your money grows.
Partial Withdrawals (Advances) Without Breaking the Account
| Purpose | Limit (approx.) |
|---|---|
| Home purchase/construction | Up to 36 months of basic+DA (after 5 yrs membership) |
| Medical emergency | 6 months basic or employee share — no service minimum |
| Education/marriage | 50% of employee share (after 7 yrs) |
| Unemployment (1+ month) | 75% of balance; full closure after 2 months |
Checking and Growing Your PF
Track via the UMANG app/EPFO portal against your UAN; verify the employer actually deposits (defaults happen — passbook gaps are the tell). To accelerate: VPF beats most debt instruments at equal risk, and a higher basic percentage in your salary structure mechanically raises both sides' contributions.
Frequently Asked Questions
How is PF calculated on salary?
12% of basic+DA from employee, 12% from employer (8.33% of it to EPS pension, capped on ₹15,000 basic). ₹40,000 basic = ₹9,600/month total inflow.
What is the current EPF interest rate?
EPFO sets it annually — recently around 8.25%. Interest credits yearly and compounds; verify the current year's declared rate.
Is PF withdrawal tax-free?
After 5 continuous years of service, yes. Earlier withdrawals attract TDS and taxability — transfers at job changes preserve the clock.
What is the difference between EPF and EPS?
EPF is your compounding savings account (most of the money); EPS is a small defined-benefit pension from 8.33% of the employer share, capped near ₹1,250/month inflow.
Can I contribute more than 12% to PF?
Yes — VPF (voluntary provident fund) up to 100% of basic, earning the same rate. Interest on employee contributions above ₹2.5L/year is taxable.
Should I withdraw PF when changing jobs?
No — transfer via UAN. Withdrawal breaks the 5-year tax exemption, halts compounding, and fragments pension service.
✓ Formula verified • Last updated: August 20, 2026