EPF Calculator — Provident Fund Corpus & Pension

The EPF (Employee Provident Fund) interest rate for 2026 is 8.25% per annum, as declared by the EPFO (Employees Provident Fund Organisation). This rate is credited annually to EPF accounts at the end of the financial year. The interest is compounded annually on the monthly running balance. EPF interest is tax-free at maturity for employees who have completed 5 years of continuous service. For those with less than 5 years of service, the interest earned becomes taxable at withdrawal.

EPF (Employee Provident Fund) and EPS (Employee Pension Scheme) are both part of the EPFO system. Employee contributes 12% of Basic+DA to EPF. Of the employer's 12% contribution, 8.33% goes to EPS (capped at ₹1,250/month if basic is above ₹15,000) and 3.67% goes to EPF. EPS builds a pension corpus for monthly pension after retirement. Important note: Central government employees who joined after January 1, 2004 are under NPS, NOT EPF/EPS. EPF/EPS applies to state government employees, PSU employees, and private sector employees covered under the EPF Act 1952.

EPF corpus is calculated using the compound interest formula on monthly contributions. Both employee (12% of Basic+DA) and employer (12% of Basic+DA) contributions accumulate with interest. The formula used is: Future Value = Monthly Contribution × [(1 + monthly rate)^n - 1] / monthly rate, where n is total months of service and monthly rate = annual interest rate / 12. For example, with ₹30,000 Basic+DA, monthly contribution of ₹7,200 (employee+employer), at 8.25% for 25 years, the corpus would be approximately ₹72-75 lakh.

EPF withdrawal is tax-free if: (1) You have completed 5 or more years of continuous service with the same employer. (2) Transfer of EPF account on job change (not withdrawal) is always tax-free. For withdrawal before 5 years: the employer contribution and interest are taxable. Your own contribution (employee share) is not taxed on withdrawal since it was paid from your salary after tax. EPF interest is also tax-exempt up to ₹2.5 lakh/year of contribution. TDS at 10% is deducted on premature withdrawal if PAN is provided, or 30% if PAN is not provided.

Yes, partial EPF withdrawal is allowed for specific purposes: Medical emergency — up to 6 months of Basic+DA or your share of EPF (whichever is less). Marriage of self/children/siblings — up to 50% of employee's own contribution after 7 years. Home purchase/construction — up to 24 months of Basic+DA after 5 years. Home loan repayment — up to 36 months of Basic+DA after 10 years. Children's education — up to 50% of employee's share after 7 years. Renovation of house — up to 12 months of Basic+DA after 10 years. Full withdrawal is allowed only on retirement, or after 2 months of unemployment.