Tax Suite

Statutory EPF & Pension Calculator

Use this EPF Calculator to calculate provident fund contributions. It details your employer PF split and employee share under the statutory retirement rules.

EPF Calculator
A retirement savings utility that computes employee and employer provident fund splits under the EPF Scheme, 1952.
Provident Fund Contribution
The statutory 12% contribution of basic salary paid by both the employee and the employer.
Accurate EPFO guidelines
FY 2026-27 rules compliant
Capped vs Uncapped options
100% free tool
Employees' Provident Fund (EPF) Calculator FY 2026-27

Provident Fund Projections

Enter your monthly basic salary on the left to instantly reveal your employee PF, employer PF, pension pool splits, and cumulative annual savings.

Employees' Provident Fund (EPF) Rules & Splits Explained

CA
Written by CTC Calculator Editorial Team Reviewed by CA K. Sharma (Chartered Accountant) | Updated: June 15, 2026

What is EPF? How Does it Accumulate?

The Employees' Provident Fund (EPF) is a retirement benefit scheme administered by the Employees' Provident Fund Organisation (EPFO) under the Indian Ministry of Labour and Employment. Both employees and employers contribute 12% of the employee's Basic Salary + Dearness Allowance (DA) into the fund monthly. This builds a powerful, highly tax-exempt compound interest pool over your career.

The Advanced EPF vs. EPS Pension Allocation Split

A critical, often misunderstood detail of Indian payroll is that the employer's 12% contribution does not go entirely into your EPF account. Instead, it is partitioned into two distinct statutory categories:

  • Employee 12% Contribution: Deposited entirely into your Employees' Provident Fund (EPF) pool.
  • Employer 12% Contribution Split:
    • EPS (Employees' Pension Scheme) Share (8.33%): Diverted to build your lifetime statutory pension pool. This share is capped at 8.33% of a ₹15,000 monthly basic base, which equals exactly ₹1,250 per month.
    • EPF (Provident Fund) Share (3.67%): The remainder of the employer's 12% contribution is deposited into your EPF account (basic salary minus the ₹1,250 EPS cap).

Uncapped vs. Capped EPF Contributions

By default, corporate employers run EPF on the actual basic salary (uncapped). However, EPFO rules allow the employer to cap the basic salary base at ₹15,000/mo. Under the capped rule, both employee and employer EPF contributions are capped at exactly 12% of ₹15,000, which equals ₹1,800 per month. If you prefer higher monthly take home cash flow, check if your company supports the capped EPF scheme.

Related Tools & Guides: Check how your EPF deductions affect your monthly net cash using our CTC Calculator or learn more about other statutory benefits like gratuity with our Gratuity Calculator. Read our payroll analysis on How HR Calculates Salary.

Disclaimer: CTC Calculator provides calculations based on standard Indian payroll and tax slabs (Budget FY 2026-27) for educational purposes. Actual structures and deductions may vary based on company policy. Please consult a Chartered Accountant or tax professional for financial decisions.

Calculation Methodology: Calculations run client-side in your browser using pure JavaScript. No personal salary data is transmitted to our servers or stored. EPF calculations default to 12% of basic salary, gratuity is projected at 4.81% of basic, and Professional Tax is based on selected state boundaries.

Calculation Methodology & Statutory Slabs

Our salary intelligence engine runs entirely local client-side scripts in your browser. No private salary figures or professional parameters are transmitted to external servers or logged, guaranteeing absolute data safety. Calculations align with standard Indian corporate payroll systems and regulatory guidelines:

  • Income Tax Slabs (Budget FY 2026-27): Updated to incorporate standard deductions and slabs. Tax calculations default to the New Tax Regime (the national default scheme) but support comparative breakeven projections under the Old Tax Regime. Standard deduction is projected at ₹75,000 for the New Regime and ₹50,000 for the Old Regime.
  • Employees' Provident Fund (EPF): Calculated at the statutory rate of 12% of Basic Salary under the Employees' Provident Fund Scheme, 1952. Support is provided for standard capping (restricted to ₹15,000 basic limit, resulting in ₹1,800/month employee contribution) and uncapped contributions.
  • Gratuity Provision: Projected at 4.81% of Basic Salary (equivalent to 15/26 of basic salary per year of service) under the Payment of Gratuity Act, 1972. Statutory tax exemption is capped at ₹20 Lakhs.
  • Professional Tax (PT): State-wise slabs are based on the latest boundaries and limits enacted by respective state departments.

For more details, please review our Editorial Policy, read our full Disclaimer, or consult a Chartered Accountant for corporate tax planning.

EPF Calculator FAQs

Quick answers to common questions about Provident Fund calculations and guidelines

What is Voluntary Provident Fund (VPF)?
Voluntary Provident Fund (VPF) is an extension of EPF. It allows you to contribute an additional percentage of your basic salary (up to 88%, making total contribution 100% of basic) into your EPFO pool. VPF earns the exact same high interest rate as EPF (typically 8.15% to 8.25%) and is highly secure.
How much interest does EPF pay in India?
The EPF interest rate is declared annually by the EPFO board in consultation with the Ministry of Finance. For recent financial years, the interest rate has been declared between 8.15% to 8.25%, representing one of the highest guaranteed, tax free debt yields in India.
Is my employer's EPF contribution deducted from my in hand salary?
No. The employer's EPF contribution (12% of basic) is a payroll cost paid by the employer. It is part of your Cost to Company (CTC) package but is not deducted from your monthly Gross Salary. Your employee share (12%) is what is actually deducted from your Gross to find your in hand.
What happens to my EPS pension money?
The EPS (Employees' Pension Scheme) share (₹1,250/mo) is pooled by the EPFO. Upon completing 10 years of cumulative service and reaching the age of 58, you become eligible to receive a guaranteed monthly lifetime pension from the EPFO, calculated based on your average basic salary.
Is EPF interest taxable under the ₹2.5 Lakhs rule?
Yes. In the union budget, interest earned on employee EPF contributions exceeding ₹2.5 Lakhs in a single financial year is taxable. For employees with a monthly basic salary exceeding ₹1.73 Lakhs, their annual EPF contribution will exceed ₹2.5 Lakhs, and the interest on the excess portion will be taxed as "Income from Other Sources".