EPF (Employee Provident Fund) is a mandatory retirement savings scheme for salaried employees in India. Both the employee (12% of Basic+DA) and employer (12% of Basic+DA) contribute. The employer's 12% is split: 3.67% goes to EPF (your account) and 8.33% goes to EPS (Employee Pension Scheme). The EPF interest rate is set by EPFO each year and compounded annually, this calculator always uses the latest rate configured in the admin panel.
Worked Example:
Basic + DA = ₹40,000/month | Current age = 30 | Retirement age = 58 (28 years)
Monthly EPF = (12% + 3.67%) × 40,000 = ₹6,268
At current EPF rate for 28 years: Corpus ≈ ₹1.23 crore
When can I withdraw my EPF?▾
Full withdrawal is allowed: after 2 months of unemployment, at retirement (58 years), or on emigration. Partial withdrawal is allowed for specific reasons: home purchase (after 5 years service), marriage (after 7 years), education, medical emergency.
Is EPF withdrawal taxable?▾
EPF withdrawn after 5 years of continuous service is completely tax-free. If withdrawn before 5 years, TDS of 10% applies (30% if PAN not provided). The employer's contribution and interest become taxable if withdrawn early.
What happens to EPS (8.33%) portion?▾
EPS builds your pension. On retirement after 10+ years of service, you get monthly pension from EPFO. The pension amount = (Pensionable salary × Service years) ÷ 70. Maximum pensionable salary is capped at ₹15,000/month for EPS.
Can I increase my EPF contribution voluntarily?▾
Yes, Voluntary Provident Fund (VPF) allows you to contribute more than 12%. Up to 100% of basic salary can go to VPF. The excess contribution earns the same EPF interest rate as above and gets Section 80C deduction. Excellent risk-free return.