How it works & FAQs
The math behind the numbers, plus answers to the questions we hear most often.
How is the employer contribution split?
The employer contributes 12% of basic+DA, but it splits into 8.33% to EPS (Employee Pension Scheme) and only 3.67% to EPF. The EPS portion funds your monthly pension after retirement — it does not add to your lump-sum withdrawal. This calculator shows only the 3.67% EPF portion in the corpus.
What is the current EPF interest rate?
The EPFO declared 8.25% for FY 2023–24. The rate is reviewed annually by the Central Board of Trustees and notified by the Ministry of Finance. Historically, it has ranged between 8.10% and 8.65% over the last decade.
Should I top up via VPF?
VPF (Voluntary Provident Fund) earns the same rate as EPF and is tax-exempt (EEE status). If you are in the 30% tax slab and have exhausted the ₹1.5L Section 80C limit via EPF itself, VPF remains one of the best risk-free returns available — better than most FDs on a post-tax basis.
When can I withdraw EPF?
Full withdrawal is permitted at retirement or after being unemployed for 2 consecutive months. Partial withdrawal is allowed for specific purposes: home purchase/construction (up to 90%), marriage (up to 50%), higher education, and medical emergencies.
Is EPF interest taxable?
EPF follows EEE (Exempt-Exempt-Exempt) status for contributions up to ₹2.5 lakh per year. Interest on the portion of annual contributions above ₹2.5L becomes taxable at your slab rate. This limit is ₹5L for government employees without employer contribution.