EPF calculator, with what VPF adds

How EPF contributions work

If you are a salaried employee covered by EPFO, 12% of your basic salary plus dearness allowance goes into your EPF account every month. Your employer also contributes 12%, but splits it: 8.33% of wages up to ₹15,000 a month (at most ₹1,250) goes to the Employees' Pension Scheme, and the rest goes to your EPF account.

Some employers contribute on your full basic salary, others only on the ₹15,000 ceiling. On a ₹30,000 basic, that is the difference between about ₹2,350 and ₹550 a month of employer money reaching your EPF. Check your payslip and pick the matching option above.

How EPF interest is calculated

The rate is declared once a year; it is 8.25% for 2025–26. Interest is worked out on the running monthly balance and credited to the account once a year, so it compounds yearly. The calculator adds each month's contribution, accrues interest on the balance, and credits it at the end of each year.

A ₹30,000 basic at age 30, rising 5% a year, with the employer contributing on full basic, builds to about ₹1.31 crore by 58 at 8.25%.

What VPF adds

The Voluntary Provident Fund lets you put more of your salary into the same account, up to 100% of basic plus DA, at the same interest rate. Your employer does not match it. In the example above, a 10% VPF raises the balance at 58 from about ₹1.31 crore to about ₹1.92 crore. Set the VPF slider to see the effect for your own salary.

Tax on EPF

Interest on your own contributions (EPF plus VPF) above ₹2.5 lakh in a year is taxable each year; employees whose employer makes no contribution have a ₹5 lakh limit instead. Withdrawals after five years of continuous service are tax-free. EPS pension, when you receive it, is taxed as income.

What this calculator leaves out

The EPS share is a pension, not a balance you withdraw, so it is not in the result. The calculator also assumes the interest rate stays the same and that you stay in EPF-covered employment until retirement.

Common questions