PF Calculator
Calculate your Provident Fund corpus and plan your retirement savings effectively
What is Employee Provident Fund (EPF)?
The Employee Provident Fund (EPF) is a government-managed retirement savings scheme for employees in the organized sector. Both employee and employer contribute 12% of the employee's basic salary monthly to the EPF account. The accumulated amount grows with compound interest and provides a substantial retirement corpus along with pension benefits.
How EPF Works?
Every month, 12% of your basic salary (plus dearness allowance) is deducted and contributed to your EPF account. Your employer also contributes an equal 12% amount. Of the employer's 12% contribution, 8.33% goes to EPS (Pension Scheme) and the remaining 3.67% goes to your EPF account. The entire amount earns interest as declared by the government annually.
EPF Contribution Structure
Employee Contribution (12%)
- 12% of basic salary + DA
- Goes entirely to EPF account
- Eligible for tax deduction under Section 80C
- Maximum contribution capped at ₹15,000 basic
Employer Contribution (12%)
- 8.33% to EPS (Pension Scheme)
- 3.67% to EPF account
- Additional 1% contribution to EDLI (Insurance)
- Administrative charges (0.5% of basic salary)
EPF Interest Rate
The EPF interest rate is declared annually by the Employees' Provident Fund Organization (EPFO). The interest is calculated on the monthly running balance and credited at the end of the financial year. Recent EPF interest rates:
- 2023-24: 8.25%
- 2022-23: 8.15%
- 2021-22: 8.10%
- 2020-21: 8.50%
- Historically, EPF has offered competitive returns compared to traditional savings
EPF vs VPF vs PPF
EPF (Employee PF)
- Mandatory for organized sector
- Employee + employer contribution
- 12% of basic salary
- Tax-free on maturity
VPF (Voluntary PF)
- Optional contribution by employee
- Above 12% of basic salary
- Same interest rate as EPF
- No employer matching
PPF (Public PF)
- Voluntary savings scheme
- Self-contribution only
- Maximum ₹1.5 lakh/year
- 15-year lock-in period
EPF Withdrawal Rules
- Retirement: Complete withdrawal allowed at age 58
- Early Withdrawal: Allowed after 2 months of unemployment
- Partial Withdrawal: Available for specific purposes (education, marriage, medical)
- Home Purchase: Withdrawal allowed for home purchase/construction
- Pension Scheme: If service less than 10 years, EPS amount can be withdrawn
Tax Benefits of EPF
- Section 80C: Employee contribution deductible up to ₹1.5 lakh
- Section 10(11): Interest earned is tax-free
- Maturity Amount: Completely tax-free if continuous service of 5 years
- Employer Contribution: Exempt from tax up to specified limits
- EEE Benefits: Exempt-Exempt-Exempt tax treatment
EPF Account Services
- UMANG App: Access EPF services through mobile app
- Online Portal: Passbook, withdrawal, transfer services
- e-Passbook: Download detailed account statement
- missed Call Service: Check balance through missed call
- SMS Service: Get balance details via SMS
EPF Transfer Process
- Job Change: EPF balance can be transferred to new employer
- Online Transfer: Submit transfer claim through EPF portal
- Form 13: Traditional method for EPF transfer
- Multiple Accounts: Can merge previous EPF accounts
- Withdrawal Option: Withdraw if unemployment exceeds 2 months
Tips for Maximizing EPF Benefits
- VPF Contribution: Increase contribution through Voluntary Provident Fund
- Nomination Update: Keep nominee details updated
- Account Consolidation: Transfer old EPF accounts to current one
- Higher Pension: Opt for higher pension scheme if eligible
- Regular Checking: Monitor EPF balance and contributions regularly
Common EPF Mistakes to Avoid
- Early Withdrawal: Avoid premature withdrawals to maximize compounding
- Ignoring VPF: Miss opportunity for additional tax-free savings
- Outdated KYC: Not updating KYC details causing transaction issues
- Multiple Accounts: Not consolidating old EPF accounts
- Wrong Details: Incorrect personal details affecting claims