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%, but that splits: 8.33% (capped at ₹1,250 a month) goes to the pension scheme and never appears in your PF balance, and only the remaining 3.67% does.
So on a ₹15,000 PF wage, ₹3,600 a month leaves in total but only ₹2,350 grows your 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 8.33% of it is diverted to the Employees’ Pension Scheme, capped at ₹1,250 a month. That buys a pension entitlement rather than adding to your balance. Only the remaining 3.67% shows up in your PF account.
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 (in force from 1 April 2026).
- 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.
Related calculators
In-Hand Salary Calculator
Turn a CTC into an estimated monthly take-home figure.
VPF Calculator
See what voluntary PF costs you each month and builds over time.
HRA Calculator
Work out how much of your HRA is actually exempt.
Gratuity Calculator
The CTC line item and the amount you would actually receive.
Salary Hike Calculator
How much of a raise survives tax and reaches your bank account.
Reverse Salary Calculator
Start from the take-home you want and work back to a CTC.