How to use the PF Calculator
- Enter monthly basic + DA (PF wages).
- Choose whether PF is calculated on the ₹25,000 wage ceiling or on full basic.
- Set the years, interest rate and yearly salary increase for the projection.
Formula
Employee = 12% × PF wages
Employer to EPS = 8.33% × min(PF wages, ₹25,000) — max ₹2,083
Employer to EPF = 12% × PF wages − EPS
Yearly interest = Σ (running balance each month × rate ÷ 12)
How the employer's 12% is split
The employer contributes 12% of PF wages, but 8.33% of wages (on at most ₹25,000, i.e. up to ₹2,083 a month) goes to the Employees' Pension Scheme (EPS). Only the remainder is added to your EPF account. Your own 12% goes entirely to EPF.
| ₹25,000 ceiling (from 17 Sep 2026) | Full basic | Old ₹15,000 ceiling | |
|---|---|---|---|
| Your contribution (12%) | ₹3,000 | ₹3,600 | ₹1,800 |
| Employer → EPS (8.33%, capped) | ₹2,083 | ₹2,083 | ₹1,250 |
| Employer → EPF | ₹917 | ₹1,517 | ₹550 |
| Added to your EPF each month | ₹3,917 | ₹5,117 | ₹2,350 |
Note
How EPF interest is calculated
EPFO computes interest monthly on the running balance and credits it once a year. The rate is declared each financial year, so treat long projections as estimates.
Worked example
₹25,000 PF wages, 1 year at 8.25%, no opening balance
- ₹3,000 (you) + ₹917 (employer) = ₹3,917 into EPF each month → ₹47,004 a year
- Interest = 3,917 × (1 + 2 + … + 12) × 8.25% ÷ 12 ≈ ₹2,100
Balance ≈ ₹49,104 after one year
Important notes
- The projection excludes EPS pension, which is paid as a monthly pension rather than accumulated in your EPF balance.
- Voluntary PF (VPF) contributions are not included.
Frequently asked questions
What is the PF wage ceiling now?
₹25,000 a month from 17 September 2026, up from ₹15,000. Contributions are mandatory on PF wages up to this amount, and the employer's EPS share is capped at ₹2,083 a month.
Is PF mandatory above ₹25,000 basic?
Employees who join with PF wages above the ceiling can, in certain cases, opt out at joining. Once you're a member, contributions continue. Many employers also contribute on full basic by policy.
Why is my employer's EPF share less than mine?
Because part of the employer's 12% goes to the EPS pension scheme.
What interest rate does EPF pay?
EPFO declares the rate each year. The calculator is pre-filled with 8.25% (declared for FY 2025-26); change it to the current rate if different.
Sources and review
Last reviewed on by the BizToolsIndia editorial team. Official references:
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