EPF Calculator

The Employee Provident Fund is a statutory retirement-savings scheme run by EPFO. If you work in an organisation with 20+ employees, 12% of your basic salary is deducted every month, your employer matches it, and the combined balance earns an annual interest set by the government. The corpus is paid out when you retire, switch jobs (after 2 months unemployed), or in case of specified emergencies.

Your 12% goes entirely into EPF. Your employer's 12% is split: 8.33% is diverted to the Employees' Pension Scheme (EPS) and the remainder lands in EPF. Crucially, the EPS share is capped - only 8.33% of a basic of ₹15,000 goes to EPS, i.e. a hard ceiling of ₹1,250/month.

So if your basic is ₹15,000 the split is the textbook "3.67% to EPF + 8.33% to EPS". If your basic is ₹50,000 the EPS share is still ₹1,250 and the rest (₹4,750) flows into your EPF. This calculator models that cap explicitly.

Employer EPF = 12% × basic − min(8.33% × basic, ₹1,250)

• Section 80C: employee contributions qualify for deduction within the ₹1.5 lakh 80C limit.
• Tax-free interest: interest is tax-free up to ₹2.5 lakh of annual contributions (₹5 lakh for non-employer-contributing accounts). Excess interest is taxable.
• Tax-free maturity: withdrawal is fully tax-free if you've served 5+ continuous years.
• EPS is separate: EPS doesn't pay a lumpsum - it funds a small monthly pension once you turn 58 (subject to 10+ years of service).

EPF is portable across employers via your UAN - when you change jobs, transfer the balance instead of withdrawing it, so the compounding clock keeps ticking. Partial withdrawals are allowed for specific reasons (home purchase, medical, marriage, higher education) without breaking the 5-year continuity for tax purposes.

• Salary grows at a steady annual rate - real raises are lumpy, so use a long-run average.
• The EPF rate stays at 8.25% for the entire horizon. In practice EPFO revises it yearly.
• Interest is credited annually on the combined balance - close to EPFO's actual monthly-running-balance method but easier to reason about.
• EPS contributions are tracked separately and excluded from the EPF maturity total - they fund a pension, not a lumpsum.