Is EPF interest taxable?

Employee contributions to EPF up to ₹2.5 lakh per financial year generate tax-free interest. Interest on employee contributions exceeding ₹2.5 lakh annually is taxable as per income tax slabs.

Can I withdraw my EPF balance before retirement?

Partial withdrawals are permitted for specific life events (house purchase, medical emergencies, higher education, marriage) after completing specified service periods.

Career & Salary

PF (Provident Fund) Calculator

Calculate monthly EPF and EPS contributions from basic wage and project multi-year retirement accumulations at EPFO statutory interest rates.

Monthly Basic Salary + DA (₹)

₹

Projection Horizon (Years)

Apply statutory EPS wage cap (Cap EPS contribution to 8.33% of ₹15,000 = max ₹1,250/mo)

Total Monthly PF Deposit

₹5,950

Projected balance in 5 years at 8.25%: ₹4,55,698

Monthly Contribution Split

Employee Share (12%):₹3,600

Employer EPF Share:₹2,350

Employer EPS (Pension):₹1,250

EPF & EPS Statutory Contribution Formulas

Calculates monthly Employee Provident Fund (EPF), Employee Pension Scheme (EPS), and employer contributions, compounding multi-year accumulations at official EPFO interest rates.

Employee EPF = 12% of Basic | Employer EPF = 3.67% of Basic | Employer EPS = 8.33% of Basic (capped at ₹1,250 on ₹15k wage ceiling)

Calculation Steps

1Calculate 12% of basic wage for employee provident fund contribution.
2Bifurcate employer contribution (12% total) into 8.33% EPS (pension) and 3.67% EPF (provident fund).
3Compound the accumulated EPF balance at the prevailing annual EPFO interest rate (e.g. 8.25% p.a.).
4Apply annual salary increments to project retirement corpus over 5 to 35 years.

Practical Example

Scenario: Monthly Basic Salary of ₹30,000, 8.25% EPFO interest rate over 15 years

Inputs: Basic: ₹30,000 | EPF Rate: 8.25% | Period: 15 Years | Annual Wage Hike: 5%

Calculation: Monthly Employee EPF: ₹3,600 | Employer EPF: ~₹2,350 | Compound interest calculated monthly.

Result: Estimated Corpus after 15 Years: ~₹28,50,000+ (Total invested ~₹14,00,000)

Assumptions & Disclaimers

Key Assumptions:

EPFO declared interest rate (8.25% for FY 2023-24 / FY 2024-25) is compounded annually on monthly running balances.
EPS wage ceiling is ₹15,000/month (max ₹1,250/month diverted to pension fund) as per EPFO statutory rules.

EPFO declares interest rates annually subject to Ministry of Finance ratification. Voluntary Provident Fund (VPF) and taxability of PF interest above ₹2.5 lakh/year should be considered.