EPF Contribution Calculator

Calculate the exact monthly Employee Provident Fund (EPF) and Pension Scheme (EPS) splits.

Salary Details

Monthly Basic Salary + DA (₹) Only include Basic Pay and Dearness Allowance. Exclude HRA, Allowances, etc.

Is your Basic Pay above ₹15,000?

Calculate on Actual Basic Salary (Employer and Employee both deduct 12% on full basic)

Cap PF at ₹15,000 Limit (Deduction restricted to ₹1,800/month maximum)

Note: Under EPF rules, the employer’s share to the Pension Scheme (EPS) is legally capped at 8.33% of ₹15,000 (i.e. Max ₹1,250), regardless of actual salary.

Monthly Contribution Summary

Employee Contribution (12%)

Goes to EPF Account

₹ 3,000

Employer Contribution (12%)

Goes to EPF (3.67%)

₹ 1,750

Goes to Pension/EPS (8.33%)

₹ 1,250

Total Monthly Accrual

₹ 6,000

Yearly Estimate

₹ 72,000

EPF Contribution Rules Explained

The Employees' Provident Fund (EPF) is a compulsory retirement savings scheme for salaried employees in India. Any company with more than 20 employees must register with the EPFO. Both the employee and the employer contribute 12% of the employee's basic salary (plus dearness allowance, if any) every month.

Employee (12%)

The entire 12% deducted from your in-hand salary goes straight into your EPF account.

Employer (12%)

The employer's 12% is split: 3.67% goes to your EPF, and 8.33% goes to the EPS (Pension Scheme).

The ₹15,000 Cap Rule

For employees earning more than ₹15,000 in Basic Pay, the EPF rules allow the employer to cap the contribution calculations strictly to ₹15,000. Under this ceiling, the maximum monthly PF deduction is fixed at ₹1,800.

Regardless of what the employee chooses, the employer's contribution to the Pension Scheme (EPS) is legally capped at a maximum of ₹1,250 per month.

Frequently Asked Questions

EPF (Employee Provident Fund) is a retirement savings scheme managed by EPFO. It's mandatory for organizations with 20+ employees. Both employer and employee contribute 12% of basic salary (up to ₹15,000 for employer's PF). The current EPF interest rate is 8.25% (FY 2023-24).

From the employer's 12% contribution, 8.33% goes to EPS (Employee Pension Scheme) and 3.67% to EPF account. EPS provides a monthly pension after retirement (minimum 10 years of service). EPF is a lump-sum amount you can withdraw on retirement or resignation.

Partial withdrawal is allowed for specific purposes: home purchase/construction, medical emergency, education, or marriage. Full withdrawal is allowed after 2 months of unemployment. Early withdrawal before 5 years of service attracts TDS.

EPF interest on contributions up to ₹2.5 lakh/year is tax-free. Interest on contributions exceeding ₹2.5 lakh is taxable at your income tax slab rate. The entire EPF withdrawal after 5 years of continuous service is tax-free.

EPF interest is calculated monthly but credited annually. The rate is declared by EPFO each year. Interest is calculated on the running monthly balance: Monthly Interest = (Opening Balance + Current Month Contribution) × Annual Rate / 12.