How EPF contributions work
- You contribute 12% of your basic salary + dearness allowance every month.
- Your employer also contributes 12%. Of this, 8.33% of up to ₹15,000 (a maximum of ₹1,250 a month) goes to the Employees' Pension Scheme (EPS) and the rest goes to your EPF account.
- If you joined after September 2014 with a basic salary above ₹15,000, you may not be an EPS member — then the full employer share goes to EPF. Choose “None” above in that case.
How EPF interest is calculated
Interest is calculated monthly on your running balance and credited to your account once a year. The rate is declared by EPFO each financial year — 8.25% for FY 2024-25. Change the rate above if a new one is announced.
Is EPF tax-free?
Withdrawals after 5 years of continuous service are tax-free. Interest on your own contributions above ₹2.5 lakh a year (₹5 lakh where the employer doesn't contribute) is taxable. Your contribution also qualifies for section 80C under the old regime.
Can I withdraw EPF before retirement?
Partial withdrawals are allowed for specific needs such as buying a house, medical treatment, marriage or education, subject to EPFO rules. You can also withdraw after two months of unemployment. Check the latest rules on the EPFO portal.