Your employer contributes 12%, but 8.33% is diverted to the pension scheme (EPS), capped at the ₹15,000 wage ceiling. Only the balance reaches your EPF. This calculator separates the two and applies interest on the monthly running balance, the way EPFO actually does it.
Most EPF calculators quietly add the full 12% employer share to your corpus. That is not what happens.
Your employer’s 12% does not all land in your EPF. 8.33% of wages, capped at the ₹15,000 ceiling (₹1,250 a month), is diverted to the Employees’ Pension Scheme. Only the remainder joins your provident fund balance. EPS money is not a lump sum you withdraw — it buys a pension. Calculators that add the full 12% to your corpus overstate it, often by lakhs over a career.
EPFO computes interest on the monthly running balance but credits it once a year on 31 March. A contribution made in March therefore earns very little in that year. This calculator follows the same method, so the figure will sit closer to your passbook than a simple annual-compounding model.
Since FY 2021-22, interest on your own contributions above ₹2.5 lakh in a financial year is taxable (Rule 9D, CBDT Notification 95/2021). The threshold is ₹5 lakh where the employer makes no contribution — in practice, government employees with GPF. Interest on the employer’s share is not touched by this rule. High earners and anyone making large VPF contributions cross ₹2.5 lakh more easily than they expect.
The EPF Scheme 2026, notified on 29 June 2026, replaced the 1952 scheme. Rates, the ₹15,000 ceiling and the EPS split are unchanged. Two things did change: the contribution base is now “wages” as defined in the Code on Social Security (with the 50% deeming rule) rather than the old “basic wages”, and either the employee or the employer can now independently reduce or stop voluntary contributions above the ceiling — previously that needed a joint option.
