Estimate your EPF balance at retirement from your basic pay and DA, salary growth and the current 8.25% interest rate.
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How EPF contributions work
| Contribution | Rate | Goes to |
|---|---|---|
| Employee | 12% of basic + DA | EPF |
| Employer | 3.67% (more if wages exceed ₹15,000) | EPF |
| Employer | 8.33% of wages up to ₹15,000 (max ₹1,250 a month) | EPS pension |
On a basic + DA of ₹40,000, you pay ₹4,800 a month. Your employer also pays ₹4,800: ₹1,250 to the pension scheme and ₹3,550 to your EPF.
EPF interest rate
The EPFO sets the rate each year. It’s 8.25% for 2025-26, the same as for 2023-24 and 2024-25. Interest is calculated monthly and credited once a year.
Tax
Your contributions qualify for deductions under the old tax regime. Interest on employee contributions above ₹2.5 lakh a year (₹5 lakh where there’s no employer contribution) is taxable. Withdrawals after 5 years of continuous service are tax-free.
Frequently asked questions
What is the EPF interest rate for 2025-26?
8.25%.
How much does my employer contribute?
12% of basic + DA, split between EPS (8.33% of up to ₹15,000) and EPF (the rest).
Is the EPS amount part of my EPF balance?
No, it goes to the Employees’ Pension Scheme and pays a monthly pension later.
Can I contribute more than 12%?
Yes, through the Voluntary Provident Fund (VPF), which earns the same rate.
Sources
- EPFO: Employees’ Provident Fund Organisation
- Press Information Bureau: EPF interest rate announcements
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