# EPF / PF Calculator

> Under the EPF scheme, you contribute 12% of basic salary plus DA, and your employer contributes 12% — of which 8.33% goes to the Employees' Pension Scheme (on wages up to the ceiling) and the rest to your EPF account. Interest is credited yearly at the rate notified by EPFO — 8.25% for FY 2025-26, unchanged for a third year. Your corpus grows with salary hikes and compounding.

Interactive calculator: https://www.industax.com/calculators/epf-pf

- **Employee contribution:** 12% of basic + DA
- **EPF interest (FY 2025-26):** 8.25%
- **Taxable interest above:** ₹2.5 lakh contribution

## How contributions are split

The statutory wage ceiling for mandatory coverage was raised to ₹25,000 a month from 17 September 2026. Employers can contribute on higher wages voluntarily.

| Contribution | Rate | Goes to |
| --- | --- | --- |
| Employee | 12% of basic + DA | EPF account |
| Employer — EPS | 8.33% of wages up to the ceiling | Pension scheme |
| Employer — EPF | Balance of 12% | EPF account |
| Employer — EDLI and admin | Small additional percentages | Insurance and administration |

## Tax treatment

- Employee contribution qualifies for 80C (old regime)
- Interest on your own contributions above ₹2.5 lakh a year (₹5 lakh if no employer contribution) is taxable
- Employer contributions to PF, NPS and superannuation above ₹7.5 lakh a year are taxable as perquisites
- Withdrawal after 5 years of continuous service is tax-free
- Withdrawal before 5 years is taxable, with TDS if above ₹50,000

## Worked example: monthly contribution on ₹40,000 basic

1. Employee: 12% × ₹40,000 = ₹4,800 to EPF.
2. Employer: 12% × ₹40,000 = ₹4,800 (if the employer contributes on full wages). Of this, 8.33% of the ₹25,000 wage ceiling (₹2,083) goes to EPS and ₹2,717 to EPF.
3. Total into EPF account ≈ ₹7,517 a month.

**Result:** ≈ ₹90,200 a year into EPF before interest.

## FAQs

### What is the current EPF interest rate?

8.25% for FY 2025-26, approved by the government in June 2026 — the same as the two previous years. The rate for each year is announced by the EPFO's Central Board of Trustees and notified by the government, usually during or after the year.

### Can I withdraw PF when I change jobs?

You should transfer it to the new employer's account instead. Withdrawal is allowed after two months of unemployment, and partial withdrawals are allowed for specific needs such as housing, medical treatment and education.

### Is VPF interest also tax-free?

VPF counts as your own contribution, so interest on combined employee contributions above ₹2.5 lakh a year is taxable.

## Official sources

- EPFO: https://www.epfindia.gov.in/
- Ministry of Labour — Labour Codes: https://labour.gov.in/

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Canonical page: https://www.industax.com/calculators/epf-pf
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.