How EPF contributions work
You contribute 12% of basic + DA. Your employer also contributes 12%, split into 8.33% to the Employees’ Pension Scheme (EPS, on salary up to ₹15,000, so at most ₹1,250 a month) and the rest to your EPF account. The EPF balance earns interest declared every year – 8.25% for FY 2024-25.
EPF withdrawals after five years of continuous service are tax-free. Interest on employee contributions above ₹2.5 lakh a year is taxable.
Employers: we handle payroll compliance including PF and ESI returns.
Frequently Asked Questions
What is the current EPF interest rate?
8.25% a year for FY 2024-25, declared by EPFO. The rate is reviewed every year.
Is EPS included in the calculated corpus?
No. The pension share goes to EPS and is paid as a monthly pension, not included in the EPF balance.
When can I withdraw my PF?
Fully at retirement or after two months of unemployment; partial withdrawals are allowed for housing, education, marriage and medical needs.
Is PF withdrawal taxable?
Not after five years of continuous service. Earlier withdrawals may be taxed and TDS may apply.
This calculator gives an estimate based on the rules shown above. Rates and limits change through budgets and notifications – confirm with a professional before you file or pay.