How EPF Works

Under the Employees' Provident Fund scheme, you contribute 12% of basic salary and DA, and your employer matches it. Of the employer's 12%, 8.33% of basic (capped at ₹15,000) funds the Employees' Pension Scheme, with the remainder credited to your EPF account. This EPF calculator compounds both shares at the declared annual interest rate.

Interest and Tax

Interest is declared each financial year and credited annually. Contributions, interest, and the final corpus are tax-exempt under Section 80C and the EEE regime, provided the account has been active for five years.

Building the Corpus

The longer you stay in the scheme, the more compounding does the work — a 30-year horizon can triple the value of contributions alone. Voluntary contributions above 12% can accelerate growth further.