Last updated: 2026-10-21
How EPF contributions work
- You pay 12% of basic + DA every month.
- Your employer also pays 12%, but 8.33% of wages up to ₹15,000 (at most ₹1,250 a month) goes to the Employees' Pension Scheme (EPS). The rest goes to your EPF.
- Interest (8.25% for FY 2025-26) is calculated monthly on the running balance and credited once a year.
- EPF interest is tax-free, except on your own contributions above ₹2.5 lakh a year.
Frequently asked questions
What is the EPF interest rate?
8.25% for FY 2025-26, the same as the previous two years. EPFO announces the rate every year.
Is the EPS pension included here?
No. This calculator shows your EPF balance. The EPS part gives a separate monthly pension after 10 years of service.
Can I withdraw EPF before retirement?
Partial withdrawals are allowed for a house, marriage, education, medical needs or after 2 months of unemployment. Withdrawing the full balance before 5 years of service makes it taxable.