Your EPF quietly builds a retirement corpus every month through employee and employer contributions plus compound interest. Enter your details to project your EPF balance at retirement.
Formula
Employee Contribution = 12% of Basic+DA
Employer to EPF = 3.67% of Basic+DA (rest 8.33% goes to EPS pension, capped)
Corpus compounds monthly at the notified EPF rate
Example: A 28-year-old with ₹40,000 basic salary, 8% annual increments and 8.25% EPF rate would accumulate roughly ₹2.4 crore by age 58, combining employee + employer contributions and 30 years of compound interest.
EPF Contribution Breakdown (₹40,000 Basic)
| Component | Rate | Monthly Amount |
|---|
| Employee Contribution | 12% | ₹4,800 |
| Employer to EPF | 3.67% | ₹1,468 |
| Employer to EPS (Pension) | 8.33% | ₹3,332 (capped at ₹1,250 if basic > ₹15,000) |
| Total to EPF Account | - | ₹6,268/month |
Note: EPS contribution is capped based on a ₹15,000 pensionable salary ceiling in most cases, so the actual EPS amount is often lower than 8.33% of full basic for higher earners.
Frequently Asked Questions
How much does the employer contribute to EPF?
Employers contribute 12% of basic salary, but only 3.67% actually goes to EPF — the remaining 8.33% (subject to a cap) goes to the Employee Pension Scheme (EPS), which provides a monthly pension after retirement.
Is EPF interest taxable?
EPF interest is tax-free on contributions up to ₹2.5 lakh per year (₹5 lakh if the employer doesn't contribute to EPF, as in some government schemes). Interest on contributions above this threshold becomes taxable.
Can I withdraw EPF before retirement?
Partial withdrawals are allowed for specific purposes (home purchase, medical emergency, marriage, education) after certain years of service. Full withdrawal is allowed after 2 months of continuous unemployment, though this breaks compounding.
What happens to my EPF when I change jobs?
You should transfer your EPF balance to your new employer's account using the UAN (Universal Account Number) — this preserves your service continuity and avoids unnecessary tax or withdrawal.
Is EPF mandatory for all employees?
It's mandatory for employees earning up to ₹15,000/month basic salary in companies with 20+ employees. Employees above this threshold can be exempted with employer/employee mutual consent in some cases, though most still opt in.
What is the current EPF interest rate?
The EPF interest rate is set annually by the EPFO (Employees' Provident Fund Organisation) and has typically ranged between 8-8.5% in recent years — always check the latest declared rate.
Can I contribute more than 12% to EPF?
Yes, through the Voluntary Provident Fund (VPF) — you can contribute up to 100% of basic salary, earning the same EPF interest rate, though the employer's contribution stays fixed.
What is EPS and how is the pension calculated?
EPS (Employee Pension Scheme) is funded by part of the employer's contribution. Monthly pension is calculated using a formula based on pensionable salary and years of service, payable typically from age 58.
Does EPF interest compound monthly or annually?
EPF interest is calculated monthly on the running balance but credited to the account annually at financial year-end — the calculator reflects the effective monthly compounding on your contributions.
What if my employer doesn't deposit EPF contributions?
This is illegal. You can check your passbook on the EPFO portal or UMANG app regularly, and file a complaint with the EPFO if contributions are missing or delayed.
This calculator provides an estimate based on standard assumptions. Actual EPF balance depends on exact salary structure, contribution history and rate changes over time. Check your official EPFO passbook for exact figures.