How the EPF Calculator Works
The Employee Provident Fund (EPF) is a mandatory retirement scheme for salaried employees. Each month you contribute 12% of Basic+DA, and your employer matches it with another 12%. The combined balance earns interest — currently 8.25% per year (FY 2024-25), declared annually by EPFO and credited to your account.
Corpus grows yearly at the EPF interest rate, on a rising salary
The ₹15,000 Wage Ceiling
The statutory minimum requires contributions on Basic+DA up to ₹15,000/month. Many private employers contribute on your actual Basic instead, giving a larger corpus. Use the Wage Base toggle to model either case.
EPF vs EPS — Where the Employer's Share Goes
In practice, of the employer's 12%, 8.33% is diverted to the Employee Pension Scheme (EPS) (capped at ₹15,000 → ₹1,250/month) and only 3.67% goes to EPF. This calculator follows the simplified 12% + 12% EPF model used by most online tools; treat the corpus as an upper estimate of the EPF portion.
EPF Tax Benefits
- Employee contributions qualify for Section 80C deduction (within ₹1.5 lakh).
- Interest and maturity are tax-free if you complete 5 years of continuous service.
- Interest on employee contributions above ₹2.5 lakh/year is taxable (high earners).