Where your 24% goes
Every month 12% of your basic pay and DA is deducted from salary and deposited in EPF. Your employer adds another 12%, but that share is split. 8.33% goes to the Employees' Pension Scheme, calculated on wages up to ₹15,000, so it is capped at ₹1,250 a month. The remaining employer share, 3.67% of wages plus whatever exceeds the EPS cap, goes into your EPF account.
| Basic + DA | Employee EPF | Employer to EPS | Employer to EPF |
|---|---|---|---|
| ₹15,000 | ₹1,800 | ₹1,250 | ₹550 |
| ₹30,000 (PF on actual) | ₹3,600 | ₹1,250 | ₹2,350 |
| ₹50,000 (PF on actual) | ₹6,000 | ₹1,250 | ₹4,750 |
How interest is added
EPFO works out interest on the monthly running balance and credits it once a year. The rate is declared each year; it is 8.25% for FY 2025-26. The calculator follows the same method: contributions go in every month, interest accrues monthly at one-twelfth of the annual rate and is added to the balance at the end of each year. Your salary can grow each year by the percentage you enter.
Reading the result
The corpus is an estimate in today's rules. Future interest rates, job changes, withdrawals and salary changes will move the number, so treat it as a planning figure. It is still useful for seeing the power of compounding: in long careers, interest usually ends up larger than all the money you put in.
For the full rules, including voluntary PF, withdrawals and tax, read how EPF is calculated. To see how PF affects your monthly pay, use the in-hand salary calculator, and check your gratuity for the other big retirement benefit.
Frequently asked questions
How is EPF contribution calculated?
The employee contributes 12% of basic plus DA. The employer also contributes 12%, of which 8.33% goes to the Employees' Pension Scheme (capped at ₹1,250 a month) and the rest to EPF.
What is the EPF interest rate for 2025-26?
EPFO notified 8.25% for FY 2025-26, the same rate as the previous year. The calculator uses 8.25% by default, and you can change it.
Is EPF interest taxable?
Interest is tax-free except on the part of employee contributions above ₹2.5 lakh a year (₹5 lakh where there is no employer contribution).
Can PF be calculated on more than ₹15,000?
Yes. The ₹15,000 wage ceiling is the mandatory limit. Many employers contribute on actual basic, which raises both the PF and the CTC cost.
Does the calculator include EPS pension?
It shows the EPS share separately but does not add it to the corpus, because EPS is paid as a monthly pension, not a lump sum.
