Mandatory minimum is 12%
Current rate: 8.25% p.a. (FY 2023-24)
What is EPF?
Employee Provident Fund (EPF) is a mandatory retirement savings scheme for salaried employees in India. Both the employee and employer contribute 12% of basic salary + DA each month. Interest is credited annually.
How is EPF calculated?
Every month, both employee and employer contribute 12% of (Basic + DA). The employer contribution is split: 8.33% goes to EPS (Employees Pension Scheme) and 3.67% goes to EPF. Interest compounds annually on the EPF balance.
What is the current EPF interest rate?
The EPFO board declares the interest rate annually. For FY 2023-24 it was 8.25% p.a. This calculator defaults to 8.25% but you can adjust it for projections.
Tax benefits of EPF
Employee contributions up to ₹1.5L are deductible under Section 80C. Interest earned is tax-free up to a certain threshold. Withdrawals after 5 years of continuous service are completely tax-free.