Calculate your Employee Provident Fund (EPF) contribution instantly. See employee and employer contributions, EPS breakdown, and yearly projections.
Enter Your Salary Details
Your monthly basic salary as per salary slip
Enter 0 if DA is not applicable
Used for EPS eligibility (under 58 years)
Your PF Calculation Results
Basic + DA (PF Wage)₹25,000
Employee Contribution (12%)₹3,000
Employer EPF (balance of 12%)₹1,750
Employer EPS (8.33% up to ₹15,000)₹1,250
Total Employer Contribution₹3,000
Total Monthly EPF Accumulation
₹4,750
Yearly Projection (12 months)
Your Contribution
₹36,000
Employer's EPF
₹11,016
Total EPF Savings
₹47,016
Interest (8.25%)
₹3,879
How to Calculate PF on Salary in India
The Employee Provident Fund (EPF) is a retirement savings scheme managed by the Employees' Provident Fund Organisation (EPFO) in India. Both employees and employers contribute 12% of the employee's basic salary plus dearness allowance (DA) to the fund.
Understanding PF calculation is essential for every salaried employee in India. It helps you plan your retirement savings and understand your take-home salary better.
PF Calculation Formula
Employee Contribution:
Employee PF = 12% × (Basic Salary + DA)
Employer Contribution: the employer also puts in 12%, but EPS is taken out of it first, and EPS is capped at a ₹15,000 wage. Whatever is left goes to EPF — so the EPF share is only 3.67% of the wage while the wage is at or below ₹15,000, and more than that above it.
Employer EPF (the balance): ₹3,600 − ₹1,250 = ₹2,350
Total Monthly EPF Savings: ₹3,600 + ₹2,350 = ₹5,950
Applying a flat 3.67% here would give ₹1,101, which is the common shortcut — it is only correct while the wage sits at or below the ₹15,000 EPS ceiling.
PF Contribution Rates in India 2026
Contribution Type
Rate
Calculated On
Employee EPF
12%
Basic + DA
Employer EPF
3.67%
Basic + DA
Employer EPS
8.33%
Max ₹15,000
Admin Charges
0.50%
Basic + DA (paid by employer)
EDLI Charges
0.50%
Max ₹15,000 (paid by employer)
EPF Interest Rate History
Financial Year
Interest Rate
2025-26
8.25%
2024-25
8.25%
2023-24
8.15%
2022-23
8.10%
2021-22
8.10%
Who is Eligible for PF in India?
Mandatory: All employees earning up to ₹15,000/month in organizations with 20+ employees
Optional: Employees earning above ₹15,000 can choose to contribute
Voluntary: Employees can contribute more than 12% as Voluntary Provident Fund (VPF)
Age Limit: EPS contributions stop at age 58, but EPF can continue
PF Withdrawal Rules 2026
Full Withdrawal: Allowed after 2 months of unemployment or at retirement (58 years)
Partial Withdrawal: Allowed for medical emergencies, education, marriage, home purchase
Tax-Free: Withdrawals after 5 years of continuous service are completely tax-free
Taxable: Withdrawals before 5 years attract TDS at 10% (or 30% without PAN)
Tax Benefits of PF Contribution
PF contributions offer multiple tax benefits under the Income Tax Act:
Section 80C: Employee PF contribution up to ₹1.5 lakh is tax-deductible
Interest: Interest earned is tax-free if withdrawn after 5 years
Employer Contribution: Not taxable for employee (up to 12% of Basic + DA)
Frequently Asked Questions
What is the current PF contribution rate in India?
The current PF contribution rate is 12% each from both employee and employer. The employee's 12% goes entirely to EPF. The employer's 12% is split too: EPS takes 8.33% of the wage capped at ₹15,000, and the balance goes to EPF — which works out to 3.67% only while the wage is at or below that ceiling.
What is the EPF interest rate for 2026?
The EPF interest rate for FY 2025-26 is 8.25% per annum, as declared by the EPFO. The interest is calculated monthly but credited annually at the end of the financial year.
Is PF mandatory for all employees in India?
PF is mandatory for employees earning up to ₹15,000 per month in organizations with 20 or more employees. Employees earning above ₹15,000 can opt out, but most choose to continue contributing due to the tax benefits and guaranteed returns.
How is PF calculated on salary?
PF is calculated as 12% of (Basic Salary + Dearness Allowance). For example, if Basic + DA = ₹25,000, then Employee PF = ₹3,000 and Employer PF = ₹3,000 — of which EPS takes ₹1,250 (8.33% of the capped ₹15,000 wage) and the remaining ₹1,750 goes to EPF.
What is the maximum salary for PF calculation?
While there's no maximum for employee contribution, the employer's EPS contribution is calculated on a maximum of ₹15,000. If Basic + DA exceeds ₹15,000, EPS is capped at ₹1,250 (8.33% of ₹15,000). However, EPF contribution continues on the full Basic + DA amount.
Can I withdraw PF while employed?
Yes, partial withdrawal is allowed for specific purposes like medical emergencies, higher education, marriage, or home purchase. Full withdrawal is only allowed after 2 months of unemployment or at retirement age (58 years).
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