EPF contribution breakdown
| Component | Rate | Goes to |
|---|---|---|
| Employee contribution | 12% of Basic + DA | EPF account |
| Employer contribution | 12% of Basic + DA | 3.67% to EPF + 8.33% to EPS |
This calculator considers only the EPF portion: employee's 12% + employer's 3.67%.
EPF key facts
| Feature | Detail |
|---|---|
| Interest rate | 8.25% p.a. (FY 2023-24, set annually by EPFO) |
| Tax benefit | Employee contribution: 80C deduction (up to ₹1.5L) |
| Withdrawal | Full withdrawal after 2 months of unemployment post-58. Partial for home, medical, education. |
| Taxability on withdrawal | Tax-free if continuous service ≥ 5 years |
FAQ
Is employer's 8.33% (EPS) included here?
No. The EPS portion goes to the Employees' Pension Scheme, not your EPF account. Only the 3.67% employer share is included in the EPF balance calculation.
Can I increase my EPF contribution?
Yes, through Voluntary Provident Fund (VPF). You can contribute above 12% — the extra goes into VPF at the same interest rate. There's no upper limit for VPF, but tax-free interest is capped on contributions above ₹2.5 lakh/year.