🏦 EPF Interest Rate 8.25% · FY 2025-26 · EPFO Confirmed Mar 2, 2026

EPF Calculator

Calculate your Provident Fund corpus, monthly contribution split, EPS pension & tax benefits

Salary & Contribution Details

Monthly Basic Salary + DA₹30,000
Current Age30 years
EPF Interest Rate 8.25% official8.25%
Annual Salary Increment5%
VPF Contribution Extra beyond 12%0%

Current EPF Balance

Leave 0 if starting fresh
EPF Corpus at Retirement (Age 58)
₹0
Years to retirement — yrs
Total deposited
Interest Earned: ₹0  |  Wealth:
📊 Monthly Contribution Breakdown
EPF
VPF
EPS
EDLI
ComponentWho PaysRateMonthly
Employee EPF (12%)Employee12%₹0
Employer → EPF (3.67%)Employer3.67%₹0
Employer → EPS (8.33%)Employer8.33%₹0
EDLI Insurance (0.5%)Employer0.5%₹0
Total EPF Credit / MonthBoth₹0
EPS capped at ₹1,250/month (8.33% of ₹15,000 wage ceiling) · EDLI provides life cover ₹2.5L–₹7L
Total Employee Contribution₹0
Total Employer EPF Contribution₹0
Total VPF Contribution₹0
Existing Balance (Opening)₹0
Total Interest Earned₹0
Total EPF Corpus₹0
💸 Annual Tax Benefits
80C Deduction (Employee EPF + VPF)₹0
Tax Saved @ 30% slab₹0
Tax Saved @ 20% slab₹0
🏛️ EPS Pension Estimate (at Age 58)
Pensionable Salary (capped at ₹15,000)₹15,000
Pensionable Service28 yrs
Est. Monthly EPS Pension₹0
Formula: (Pensionable Salary × Service Years) ÷ 70 · Max pension ₹7,500/month
📅 Year-by-Year EPF Growth Interest @ 8.25% · Credited annually
YearAgeAnnual ContributionTotal DepositedInterest Earned (Year)Closing Balance
📈 EPF Interest Rate History
Financial YearInterest RateChange
2025-26 (FY26) ✅ Current8.25%No change (2nd consecutive year)
2024-25 (FY25)8.25%No change
2023-24 (FY24)8.25%▲ +0.10% (from 8.15%)
2022-23 (FY23)8.15%▲ +0.05% (from 8.10%)
2021-22 (FY22)8.10%▼ −0.40% · 40-year low
2020-21 (FY21)8.50%▼ −0.15%
2019-20 (FY20)8.65%▼ −0.10%
2018-19 (FY19)8.65%▲ +0.10%
🏦 EPF Key Rules FY 2025-26
Interest rate: 8.25% p.a. (confirmed Mar 2026)
Employee contribution: 12% of Basic + DA
Employer → EPF: 3.67%
Employer → EPS: 8.33% (capped ₹1,250/month)
EDLI insurance cover: ₹2.5L – ₹7L
Tax-free interest limit: ₹2.5L/year contribution
80C deduction: Up to ₹1.5L
Auto-settlement (EPFO 3.0): Under 3 days
📋 New Withdrawal Rules (Oct 2025)
13 grounds merged into 3 categories
Partial withdrawal after: 12 months service
Education: up to 10 times
Marriage: up to 5 times
After 1 month job loss: 75% withdrawal
After 2 months job loss: 100% withdrawal
TDS if < 5 yrs service: 10% (above ₹50K)
Min. balance rule: 25% retained

What is EPF (Employees' Provident Fund)?

The Employees' Provident Fund (EPF) is a mandatory retirement savings scheme governed by the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, and managed by the Employees' Provident Fund Organisation (EPFO). It applies to all establishments with 20 or more employees. Every eligible employee contributes 12% of their Basic Salary + Dearness Allowance (DA) each month, and the employer matches this with an equal 12% — making EPF one of the most powerful wealth-creation tools for salaried India.

As of March 2026, EPFO manages a corpus exceeding ₹28 lakh crore across over 7 crore active subscribers. The EPF interest rate for FY 2025-26 has been confirmed at 8.25% per annum — the same as FY 2024-25 — by the Central Board of Trustees at its 239th meeting on March 2, 2026.

EPF Contribution Split — Where Does Each Rupee Go?

ComponentRateWho PaysGoes ToCap
Employee EPF12% of Basic+DAEmployeeEPF accountNo cap
VPF (optional)Up to 88% extraEmployeeEPF account (same)100% of Basic+DA total
Employer → EPF3.67% of Basic+DAEmployerEPF accountNo cap
Employer → EPS8.33% of Basic+DAEmployerEPS (pension fund)₹1,250/month (₹15K wage ceiling)
EDLI Insurance0.5% of Basic+DAEmployerInsurance fund₹75/month (₹15K ceiling)
Govt contribution to EPS1.16% of Basic+DACentral GovtEPS (pension fund)On wages up to ₹15K

EPF Tax Rules — EEE Status with a Catch

EPF historically enjoyed full EEE (Exempt-Exempt-Exempt) tax status. Since FY 2021-22, there is an important change: interest earned on employee EPF + VPF contributions exceeding ₹2.5 lakh per year is taxable at your applicable income slab rate. For government employees, this limit is ₹5 lakh. The EPFO maintains two separate sub-accounts and deducts TDS at 10% on taxable interest.

RuleEmployee EPF + VPFEmployer EPF Contribution
Section 80C deduction✅ Up to ₹1.5L/year❌ Not deductible by employee
Interest tax-free up to₹2.5L/year contribution (₹5L for govt)Fully tax-free always
Interest above thresholdTaxable at slab + 10% TDSTax-free
Withdrawal (5+ yrs service)✅ Fully tax-free (EEE)✅ Fully tax-free
Withdrawal (< 5 yrs service)Taxable + 10% TDS if > ₹50KTaxable + 10% TDS

VPF (Voluntary Provident Fund) — The Underrated Supercharger

VPF allows employees to contribute more than the mandatory 12% — up to 100% of their Basic + DA. The extra contribution goes into the same EPF account, earns the same 8.25% interest, qualifies for 80C deduction (within ₹1.5L), and is withdrawn under the same rules. Unlike NPS, VPF has no mandatory annuity requirement — the full balance is yours at retirement. However, the employer is not required to match VPF contributions, and interest on total employee contributions (EPF + VPF) above ₹2.5L/year becomes taxable.

EPS — The Pension Component You Often Forget

The employer's 8.33% contribution does not go into the EPF account — it funds the Employees' Pension Scheme (EPS), which provides a monthly pension after age 58. The EPS pension is calculated as: Monthly Pension = (Pensionable Salary × Pensionable Service) ÷ 70. The pensionable salary is capped at ₹15,000/month, giving a maximum monthly EPS pension of approximately ₹7,500. EPS does not earn interest; it is a defined-benefit scheme funded by employer and government contributions.

EPF Withdrawal Rules 2025 — Major Simplification

EPFO's October 2025 reform merged the old 13 withdrawal grounds into 3 simple categories, effective immediately. Here's the complete updated framework:

SituationWithdrawal LimitMin. ServiceNotes
Essential Needs (illness, education, marriage)Up to specific limits12 monthsEducation: 10 times · Marriage: 5 times
Housing (buy/build/loan repayment)Up to 90% EPF5 yearsOne-time purchase / construction
Special Circumstances (natural calamity, unforeseen)Up to 75% EPF12 monthsNo explanation required
Unemployment — 1 monthUp to 75% EPFIncludes employer contributions
Unemployment — 2+ months100% EPFFull final settlement
Pre-retirement (age 57+)Up to 90% EPF1 year before retirement
Retirement (age 58)100% EPF · tax-free5 yearsFull corpus + interest, EEE status

EPF vs PPF — Key Differences

ParameterEPFPPF
Who can investSalaried employees onlyAnyone (including self-employed)
ContributionMandatory (12% of Basic+DA)Voluntary (₹500–₹1.5L/year)
Employer contributionYes (12% + EDLI)No
Interest rate FY 2025-268.25% (EPFO declared)7.1% (govt quarterly)
Tax on interestTax-free up to ₹2.5L/yr contribution100% tax-free (EEE)
Lock-inTill retirement (partial allowed)15 years (extendable)
Pension componentYes (EPS)No
Best forSalaried employees (mandatory + employer benefit)Self-employed & flexible savers

Frequently Asked Questions

The EPFO Central Board of Trustees confirmed the EPF interest rate at 8.25% per annum for FY 2025-26 at its 239th meeting on March 2, 2026. This is the second consecutive year the rate has been retained at 8.25%. Interest is calculated monthly on the running balance but credited to subscriber accounts at the end of the financial year after government notification (expected June–September 2026).
Both employee and employer each contribute 12% of Basic Salary + DA. The employee's full 12% goes into their EPF account. The employer's 12% is split: 8.33% goes to EPS (pension fund), capped at ₹1,250/month on ₹15,000 wage ceiling, and 3.67% goes into the employee's EPF. The employer also pays 0.5% as EDLI insurance premium separately.
EPF enjoys EEE status but with one caveat since FY 2021-22: interest earned on employee EPF + VPF contributions exceeding ₹2.5 lakh per year is taxable at your slab rate. For government employees the limit is ₹5 lakh. EPFO deducts TDS at 10% on taxable interest above ₹5,000 in a year. If PAN is not linked, TDS is 20%.
EPFO simplified withdrawal rules in October 2025: the previous 13 grounds are merged into 3 categories — Essential Needs (illness, education up to 10 times, marriage up to 5 times), Housing (buying/building/loan repayment), and Special Circumstances. Partial withdrawal now requires only 12 months of service. After job loss: 75% after 1 month, 100% after 2 months. EPFO 3.0 auto-settles eligible claims in under 3 days.
TDS of 10% is deducted on EPF withdrawals before completing 5 years of continuous service if the amount exceeds ₹50,000. No TDS is deducted if you have 5+ years of service, or if withdrawal is due to ill health/employer closure, or if you submit Form 15G/15H (when total income is below taxable limit). If PAN is not furnished, TDS is deducted at 20%.
VPF (Voluntary Provident Fund) allows employees to contribute more than the mandatory 12% — up to 100% of Basic + DA — into the same EPF account. VPF earns the same 8.25% interest, qualifies for 80C deduction, and has no mandatory annuity requirement unlike NPS. However, the employer is not obligated to match VPF contributions, and interest on total contributions above ₹2.5L/year is taxable.
EPS is funded by the employer's 8.33% contribution on wages up to ₹15,000/month (max ₹1,250/month). The government contributes an additional 1.16% on wages up to ₹15,000. EPS provides a monthly pension after age 58 calculated as: (Pensionable Salary × Pensionable Service) ÷ 70. The maximum monthly EPS pension is ₹7,500. EPS does not earn interest — it is a defined-benefit pension scheme.
Full EPF balance can be withdrawn at retirement (age 58), after 2 months of continuous unemployment, or on permanent disability. For those approaching retirement, EPFO allows 90% withdrawal from age 57. The EPF corpus is fully tax-free on withdrawal if you have 5+ years of service. For less than 5 years, the withdrawal is taxable and TDS of 10% applies on amounts above ₹50,000.