EPF Calculator India 2026

The EPF interest rate for FY 2024-25 is 8.25% per annum. The rate for FY 2025-26 will be announced by EPFO after the financial year ends. EPF interest is tax-free for contributions up to Rs. 2.5 Lakh per year. Historically, EPF rates have ranged from 8.15% to 8.65% in recent years.

EPF (Employee Provident Fund) is your retirement savings where employee contributes 12% and employer's 3.67% goes to EPF - this entire amount is withdrawable. EPS (Employee Pension Scheme) receives 8.33% of employer's contribution (max on Rs. 15,000 basic) - this provides monthly pension after retirement, not lump sum withdrawal.

Yes, partial withdrawal is allowed for: Home purchase/construction (after 5 years), Medical treatment (any time), Marriage (after 7 years), Education (after 7 years), 1 year before retirement (90% withdrawal). Full withdrawal is allowed after 2 months of unemployment or at age 58.

VPF (Voluntary Provident Fund) lets you contribute beyond the mandatory 12%. Benefits: Same 8.25% interest rate as EPF, tax-free returns (up to Rs. 2.5L combined contribution), EEE tax status. Good for risk-averse investors seeking guaranteed returns. Compare with PPF (7.1%) - EPF/VPF offers higher returns.

EPF interest is calculated monthly on the running balance but credited annually. Formula: Monthly Balance × (Annual Rate / 12). Interest is credited on the balance at the end of each month. Your April-March contributions accumulate, and interest on each month's closing balance is calculated and totaled.

EPF withdrawal is tax-free if: Service is 5+ years continuous, OR if transfer to new employer's EPF. If withdrawn before 5 years: Employer's contribution + interest is taxable, your contribution's interest is taxable. 80C deduction claimed on employee contribution is also reversed.