EPF Calculator
Estimate your Employee Provident Fund maturity, employee and employer contributions, and Section 80C tax savings at the current EPFO rate.
Calculate EPF Maturity
What is EPF?
The Employee Provident Fund (EPF) is a compulsory retirement-savings scheme run by the Employees' Provident Fund Organisation (EPFO) under the Ministry of Labour. It applies to all establishments with 20 or more employees and forms the cornerstone of formal-sector retirement security in India.
Both the employee and the employer contribute 12% of basic salary + DA every month. The employee's full 12% goes to EPF, while the employer's 12% is split between EPF and the Employees' Pension Scheme (EPS, capped at ₹1,250/month). The accumulated balance earns the EPFO-declared interest, currently 8.25% p.a. for FY 2025-26 — among the highest guaranteed debt returns available in India.
EPF enjoys triple tax-exemption (EEE): contributions qualify for 80C, interest is tax-free, and the maturity amount is exempt if withdrawn after five years of continuous service.
How EPF Contributions Are Split
- Employee Contribution: 12% of basic + DA, fully credited to EPF.
- Employer Contribution: 12% of basic + DA, split as follows:
- 8.33% to EPS (Pension), capped at ₹1,250/month on basic up to ₹15,000.
- 3.67% (and any excess above the EPS cap) to EPF.
- EDLI (Insurance): Employer additionally contributes 0.5% of basic toward EDLI (group life insurance).
- Administrative charges: Small EPFO charges (0.5%) borne by employer.
Tax Benefits of EPF
- Section 80C: Employee contribution deductible up to ₹1.5 lakh per year.
- Interest: Earned interest is tax-free (provided annual employee contribution stays within ₹2.5 lakh; surplus is taxed).
- Maturity: Tax-free if withdrawn after 5 years of continuous service; otherwise taxed as salary.
- EEE status: One of the most tax-efficient long-term retirement instruments available.
How the Calculation Works
The calculator simulates month-by-month accrual: every month, interest is credited on the running balance at 8.25% / 12, and both employee and employer contributions are added. Salary growth is applied at the start of each new year.
Formula: Bm = Bm−1 × (1 + r/12) + C, where C is the combined employee + employer EPF contribution and r is the annual EPF rate.
Worked example: Basic salary ₹25,000, contribution 12%, salary growth 5%/year over 10 years gives an approximate corpus of ₹11 lakh, of which ~₹4.5 lakh comes from interest.