Quick answer
How much will my EPF be at retirement?
With ₹30,000 basic pay a month at age 28, ₹2 lakh already saved, a 6% yearly raise and 8.25% interest, your EPF can grow to about ₹2.05 crore by 58. Each month ₹3,600 comes from you and ₹2,351 from your employer, while ₹1,250 goes to EPS for a pension of roughly ₹6,400 a month.
- Interest: 8.25% a year (FY 2025-26), compounded yearly on monthly balances
- Contributions: 12% employee; employer 3.67% EPF + 8.33% EPS
- EPS pension: pensionable salary × years of service ÷ 70
How are EPF contributions split?
| From | Rate | Goes to |
|---|---|---|
| Employee | 12% of basic + DA | EPF |
| Employer | 3.67% | EPF |
| Employer | 8.33% of wages up to the ceiling | EPS (pension) |
| Employee (optional) | Any extra %, as VPF | EPF |
When basic pay is above the wage ceiling, the EPS share is capped and the rest of the employer’s 12% goes to EPF.
How is your EPF corpus calculated?
Each month, 12% of your basic pay plus DA comes from you, and the employer’s 12% minus the EPS part goes into your EPF. With ₹30,000 basic and the ₹15,000 ceiling, that is ₹3,600 from you and ₹2,350.50 from your employer, so ₹5,950.50 enters the account every month.
Interest is worked out on the running balance each month at the yearly rate ÷ 12, then credited once at the end of the year. Starting with ₹2 lakh, the first year adds ₹71,406 of contributions and about ₹19,691 of interest, for a balance of about ₹2,91,097. The EPF calculator repeats this for every year until you retire.
How does salary growth change your EPF corpus?
Your contributions are a share of basic pay, so every raise increases what goes in. For a 28-year-old with ₹30,000 basic and ₹2 lakh saved, retiring at 58 with 8.25% interest:
| Yearly salary growth | EPF corpus at 58 |
|---|---|
| 0% | about ₹1.10 crore |
| 6% | about ₹2.05 crore |
| 10% | about ₹3.47 crore |
The EPS pension doesn’t grow the same way. It is based on pensionable salary, which is capped at the wage ceiling, so it stays at about ₹6,400 a month with the ₹15,000 ceiling. At the new ₹25,000 ceiling it rises to about ₹10,700, but more of the employer’s share goes to EPS, so the EPF corpus falls to about ₹1.93 crore.
Frequently asked questions
What is the current EPF interest rate?
The EPF interest rate is 8.25% for FY 2025-26, the same as the year before. EPFO's Central Board of Trustees declares it each year and the Finance Ministry ratifies it.
How much goes into my EPF every month?
You contribute 12% of basic pay plus DA. Your employer also contributes 12%, of which 8.33% (on wages up to the ceiling) goes to the Employees’ Pension Scheme (EPS) and the rest, usually 3.67%, goes to your EPF.
How is EPF interest calculated?
Interest is worked out every month on the running balance at the annual rate ÷ 12, and credited to your account once a year at the end of the financial year.
Has the EPF wage ceiling changed?
In September 2026 the Union Cabinet approved raising the EPF/EPS wage ceiling from ₹15,000 to ₹25,000 a month. The maximum EPS contribution rises from about ₹1,250 to about ₹2,080 a month once it takes effect.
Is EPF interest taxable?
Interest on your own contributions above ₹2.5 lakh a year (₹5 lakh if your employer doesn’t contribute) is taxable. The maturity amount is tax-free after 5 years of continuous service.
How much EPF will I have after 10 years?
With ₹30,000 basic, ₹2 lakh already saved, a 6% yearly raise and 8.25% interest, the balance after 10 years is about ₹18.9 lakh. About ₹9.9 lakh of that is new contributions and about ₹7 lakh is interest.
Does VPF earn the same interest as EPF?
Yes. Voluntary PF goes into the same account and earns the same rate, currently 8.25%. For a 28-year-old with ₹30,000 basic retiring at 58, adding 10% VPF raises the corpus from about ₹2.05 crore to about ₹2.90 crore.