EPF Calculator

Employees' Provident Fund (EPF)

The Employees' Provident Fund (EPF) is a retirement benefit scheme backed by the Government of India for salaried employees. It offers guaranteed, risk-free returns and helps build a massive retirement corpus through disciplined savings and the power of compounding.

How EPF Contributions Work

1. Employee Contribution: 12% of your Basic Salary + Dearness Allowance (DA) goes directly into your EPF account.
2. Employer Contribution: The employer matches your 12% contribution. However, it is split:
   • 3.67% goes to your EPF account.
   • 8.33% goes to the Employees' Pension Scheme (EPS) subject to a cap.
3. Interest Earned: The government announces an interest rate annually (historically ranging from 8.1% to 8.5%). This interest is calculated monthly and compounded annually on your accumulated EPF balance.

Benefits of EPF

• Tax Free Maturity: Under Section 80C, EPF contributions are tax-deductible up to ₹1.5 Lakhs. The interest earned and the final maturity amount are totally entirely tax-free (EEE status).
• Safe & Secure: Sovereign backing ensures it is completely risk-free.
• Retirement Security: Enforces forced savings that you can rely on during old age.