EPF Calculator India — FY 2025-26

Q: What is the EPF interest rate for FY 2025-26?

The EPFO has retained the EPF interest rate at 8.25% per annum for FY 2025-26 (April 2025 - March 2026). This was announced at the 239th meeting of the Central Board of Trustees (CBT). Interest is calculated on monthly running balance and typically credited between June and August of the following year.

Q: How is EPF contribution split between employee and employer?

Both employee and employer contribute 12% of basic salary + DA. The employee's entire 12% goes to the EPF account. The employer's 12% is split: 3.67% goes to the EPF account and 8.33% goes to the Employee Pension Scheme (EPS), capped at Rs 15,000 basic salary. Both EPF portions earn the 8.25% interest rate.

Q: What is VPF and how is it different from EPF?

VPF (Voluntary Provident Fund) lets you contribute any amount above the mandatory 12% EPF, up to 100% of basic + DA. VPF earns the same 8.25% interest rate as EPF. Unlike PPF (capped at Rs 1.5 lakh/year), VPF has no upper limit. However, interest on total employee contributions (EPF + VPF) above Rs 2.5 lakh/year is taxable since FY 2021-22.

Q: How is EPS pension calculated and what is the maximum pension?

EPS pension formula: (Pensionable Salary x Pensionable Service) / 70. Salary is capped at Rs 15,000 and service at 35 years. Maximum pension: Rs 15,000 x 35 / 70 = Rs 7,500/month. You need at least 10 years of service to qualify. EPFO guarantees a minimum pension of Rs 1,000/month.

Q: Is EPF interest taxable?

Since FY 2021-22, interest on employee EPF + VPF contributions exceeding Rs 2,50,000 per year is taxable at your income slab rate. For government employees, the threshold is Rs 5 lakh. Employer's contribution is not affected. EPF still follows EEE (Exempt-Exempt-Exempt) regime for contributions within the threshold.

Calculate your Employee Provident Fund corpus at retirement, EPS monthly pension, and VPF benefits. See how ₹25,000 basic salary grows to over ₹1 crore with 8.25% EPFO interest, estimate your pension under the ₹15,000 ceiling formula, and model extra VPF contributions for a dramatically larger retirement corpus. Updated with FY 2025-26 rates.

Calculate your EPF corpus at retirement based on current basic salary

Monthly basic salary + DA

₹

Your basic salary plus dearness allowance per month

Current age

years

Your current age in years

Retirement age

years

EPF retirement age is typically 58

Expected salary growth

Annual increment on basic salary

EPF interest rate

Current rate: 8.25% (FY 2025-26)

Include employer EPF (3.67%)

Yes

Employer's 3.67% EPF share also earns interest in your account

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How to Use This Calculator

EPF Corpus at Retirement tab

Enter your monthly basic salary + DA, current age, and retirement age. The calculator computes your total EPF corpus at retirement, including employee contributions, employer EPF share (3.67%), and compound interest at the current EPFO rate. Use "More options" to adjust salary growth, EPF interest rate, or toggle employer contribution.

EPS Pension tab

Enter your basic salary and years of EPF service. The calculator applies the EPFO pension formula: (Pensionable Salary x Pensionable Service) / 70, with the salary capped at the ₹15,000 EPS wage ceiling. See your estimated monthly pension and how it compares to the maximum possible EPS pension.

VPF Benefits tab

Enter your basic salary and an extra monthly VPF contribution above the mandatory 12%. The calculator shows how your VPF grows at the same 8.25% EPF rate and the total combined corpus (EPF + VPF) at retirement, with a clear comparison against mandatory EPF alone.

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The Formula

EPF interest is calculated on monthly running balance and credited at year-end. Here are the key formulas used:

EPF Monthly Interest Calculation:
Monthly interest = (Opening balance + Employee contribution + Employer EPF contribution) × (Annual rate / 12 / 100)

EPF Corpus at Retirement:
Each month: Balance = (Previous balance + Monthly contributions) × (1 + r)
Where r = EPF interest rate / 12 / 100
Salary increases by growth rate % each year

Employer Contribution Split:
Employer pays 12% of basic + DA, split as:
• 3.67% → Employee's EPF account (earns interest)
• 8.33% → EPS account (capped at ₹15,000 basic)

EPS Pension Formula:
Monthly pension = (Pensionable Salary × Pensionable Service) / 70
Pensionable Salary = Average of last 60 months basic + DA (max ₹15,000)
Pensionable Service = Years of EPF membership (max 35 years)

Taxability (Budget 2021):
Interest on employee EPF + VPF contribution above ₹2,50,000/year is taxable at slab rate

EPFO calculates interest on the monthly running balance. Each month's contribution earns interest from the month of deposit until the end of the financial year, when the total interest is credited to your account.

Example

Rahul — 28-year-old IT professional, ₹25,000 basic salary

Rahul works at an IT company in Pune with a basic salary of ₹25,000/month. He wants to know his EPF corpus at retirement (age 58) and his EPS pension, assuming 5% annual salary growth and the current 8.25% EPF rate.

Step 1: Monthly contribution breakdown

Basic salary + DA₹25,000/month

Employee EPF (12%)₹3,000/month

Employer EPS (8.33% of ₹15,000 ceiling)₹1,250/month

Employer EPF (12% of ₹25,000 minus ₹1,250)₹1,750/month

Total to EPF account₹4,750/month

Step 2: EPF corpus at retirement (30 years)

Total employee contribution₹23,93,172

Total employer EPF contribution₹14,39,455

Interest earned @ 8.25%₹91,11,830

Total EPF corpus₹1,29,44,457

Step 3: EPS pension

Pensionable salary (capped)₹15,000

Years of service30

Monthly pension (₹15,000 × 30 / 70)₹6,429/month

Step 4: VPF benefit (extra ₹5,000/month)

VPF corpus (₹5,000/month for 30 years @ 8.25%)₹79,06,412

Total combined corpus (EPF + VPF)₹2,08,50,869

Rahul's mandatory EPF contributions of ₹4,750/month grow to ₹1.29 crore by retirement. Adding ₹5,000/month VPF takes his total to over ₹2 crore. His EPS pension is ₹6,429/month — the cap due to the ₹15,000 wage ceiling.

FAQ

What is the EPF interest rate for FY 2025-26? ▼

The EPFO has retained the EPF interest rate at 8.25% per annum for FY 2025-26 (April 2025 – March 2026). This was announced at the 239th meeting of the Central Board of Trustees (CBT). The rate was 8.15% for FY 2023-24 and raised to 8.25% for FY 2024-25. Interest is calculated on monthly running balance and typically credited to accounts between June and August of the following year.

How is EPF contribution split between employee and employer? ▼

Both employee and employer contribute 12% of basic salary + DA. The employee's entire 12% goes to the EPF account. The employer's 12% is split: 3.67% goes to the employee's EPF account and 8.33% goes to the Employee Pension Scheme (EPS), capped at ₹15,000 basic salary. If basic exceeds ₹15,000, the excess employer contribution (above EPS cap) goes to the EPF account. Both EPF portions earn the 8.25% interest rate.

What is VPF and how is it different from EPF? ▼

VPF (Voluntary Provident Fund) is an extension of EPF where you can contribute any amount above the mandatory 12%, up to 100% of your basic + DA. VPF earns the same interest rate as EPF (8.25% for FY 2025-26). Key advantages: same government-backed guaranteed returns, no separate account needed, and contributions qualify for Section 80C deduction. Unlike PPF (capped at ₹1.5 lakh/year), VPF has no upper contribution limit. The only caveat: interest on total employee contributions (EPF + VPF) above ₹2.5 lakh/year is taxable since FY 2021-22.

How is EPS pension calculated and what is the maximum pension? ▼

EPS pension is calculated using the formula: (Pensionable Salary × Pensionable Service) / 70. Pensionable salary is the average of your last 60 months' basic + DA, capped at ₹15,000. Service is capped at 35 years. The maximum pension is therefore ₹15,000 × 35 / 70 = ₹7,500/month. With the common example of 30 years service: ₹15,000 × 30 / 70 = ₹6,429/month. EPFO guarantees a minimum pension of ₹1,000/month. You need at least 10 years of service to qualify for monthly pension; below that, you get only a withdrawal benefit.

Is EPF interest taxable? ▼

Since FY 2021-22 (Budget 2021), interest earned on employee EPF + VPF contributions exceeding ₹2,50,000 per year is taxable at your income slab rate. For government employees, the threshold is ₹5 lakh. This means if your annual employee contribution (12% of basic × 12 months) plus VPF exceeds ₹2.5 lakh, interest on the excess amount is taxable. The employer's contribution is not affected by this rule. EPF still follows the EEE (Exempt-Exempt-Exempt) regime for contributions within the threshold — tax-free at contribution (Section 80C), accumulation, and withdrawal (after 5 years of service).

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