EPF Calculator Tax Year 2026–27
See exactly what goes into your provident fund each month. Your 12%, your employer’s 12%, and the pension slice that never reaches your PF balance.
Your result
Estimates only. Your payslip and your employer's records are the authority. Disclaimer
How EPF affects your in-hand salary
PF is the only major deduction on your payslip that you get back. It still reduces this month's cash, which is why it feels like a tax, but every rupee lands in an account with your name on it and earns interest at the rate EPFO declares each year, 8.25% for FY 2025–26.
Three separate contributions get muddled together. Yours is 12% of the PF wage, deducted from salary. Your employer adds another 12%. Where you are a member of the pension scheme, part of the employer's contribution is diverted to it: 8.33% of the pension wage, and because that wage is capped at ₹15,000 a month the pension contribution stops at ₹1,250. Whatever is left of the employer's contribution lands in your PF balance.
On a ₹15,000 PF wage that works out as ₹3,600 a month going in, of which ₹2,350 grows your balance and ₹1,250 buys pension entitlement. On a higher wage where the employer contributes on the full Basic, the ₹1,250 stays fixed and everything above it goes to the balance, so the often-quoted "8.33% and 3.67%" stops describing the split.
And if you are not an EPS member at all, none of it is diverted. The whole employer contribution adds to your PF balance.
The ₹15,000 ceiling, and why employers differ
The statutory wage ceiling is ₹15,000 a month. An employer may cap contributions there, or may charge 12% on your entire Basic. On a ₹60,000 Basic that is the difference between ₹1,800 and ₹7,200 a month leaving your salary.
Neither is wrong. Capping gives you more cash now; not capping forces more saving. What matters is knowing which one your employer does before you budget around a number.
Common questions
Why is my employer’s contribution not fully in my PF balance?
Because part of it goes to the Employees’ Pension Scheme, if you are a member. The pension contribution is 8.33% of the pension wage, and that wage is capped at ₹15,000 a month, so it stops at ₹1,250. The rest of the employer’s contribution adds to your balance.
Two things follow. On a higher Basic the pension share stays at ₹1,250 rather than rising, so it becomes a smaller and smaller fraction of the total. And if you are not an EPS member, nothing is diverted at all.
How do I know whether I am in the pension scheme?
Your UAN passbook on the EPFO portal shows the pension contribution as a separate column. If it is empty, no EPS contribution is being made for you. This most commonly affects people who first joined EPF on or after 1 September 2014 on wages above ₹15,000.
Can I reduce my PF deduction to take home more?
Generally no. Once you are covered by EPF, the 12% contribution is statutory. Employees who joined on a Basic above ₹15,000 and were never previously EPF members can sometimes opt out, but for most people it is not a choice. What does vary is whether your employer applies the ₹15,000 ceiling, and that is set by company policy rather than by you.
Is the interest rate guaranteed?
No. EPFO’s Central Board of Trustees recommends a rate each year and the government approves it. The projection here uses 8.25%, the rate declared for FY 2025–26. A future year could be higher or lower.
Is EPF interest tax free?
Up to a point. Interest on your own contributions is tax free as long as they stay within ₹2,50,000 in a year. Above that, interest on the excess is taxable. Most people only cross that line through VPF, the VPF calculator flags it.
How we keep this calculator accurate
- Tax rules are the ones in force for Tax Year 2026–27, under the Income-tax Act, 2025.
- EPF and pension figures follow EPFO’s published contribution rules.
- Professional Tax is included only for states where we have a rule we trust, and named as missing where we do not.
- Every assumption behind the estimate is shown on screen and can be changed.
- The calculator runs entirely in your browser. Your salary is never sent anywhere.
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