EPF Calculator

What is EPF (Employee Provident Fund)?

The Employee Provident Fund (EPF) is a retirement savings scheme managed by the Employees' Provident Fund Organisation (EPFO) in India. It's mandatory for organizations with 20+ employees and applies to workers earning up to ₹15,000 basic salary (though many companies extend it to higher salaries).

Both employee and employer contribute 12% each of the basic salary + DA to EPF. However, from the employer's 12%, only 3.67% goes to EPF while 8.33% goes to the Employee Pension Scheme (EPS).

EPF Contribution Breakdown

EPF Interest Rate History

EPF interest rates are declared annually by the EPFO. Recent rates:

• 2023-24: 8.25%
• 2022-23: 8.15%
• 2021-22: 8.10%
• 2020-21: 8.50%
• 2019-20: 8.50%

Benefits of EPF

• Tax Benefits: EPF contributions qualify for Section 80C deduction up to ₹1.5 lakh
• Employer Contribution: Free money from employer adds to your corpus
• Guaranteed Returns: Interest rate set by government, typically 8-8.5%
• Tax-Free Maturity: EPF corpus is tax-free if withdrawn after 5 years of continuous service
• Insurance Cover: EDLI scheme provides life insurance up to ₹7 lakh
• Pension Benefit: EPS provides monthly pension after retirement

EPF Withdrawal Rules

• Full Withdrawal: Allowed after 2 months of unemployment or at retirement (58 years)
• Partial Withdrawal: Allowed for specific purposes like marriage, education, medical emergency, home loan
• TDS on Early Withdrawal: 10% TDS if withdrawn before 5 years of service
• Transfer: EPF can be transferred when changing jobs using UAN