EPF & EPS Pension Calculator
Project your retirement provident fund corpus, employer EPS pension split, and lifelong monthly pension at the official 8.25% EPFO interest rate with annual salary increments.
Under standard private employment rules, employer EPS pension contribution is capped at ₹1,250/mo (8.33% of ₹15k). The balance goes to your EPF account for higher compound wealth.
Guaranteed pension starting at age 58 for completing 10+ years of pensionable service.
Year-by-Year EPF Amortization Passbook
Simulated annual closing balance and compounding interest progression.
| Age | Monthly Basic | Annual Employee (12%) | Annual Employer (EPF) | Annual Interest (8.25%) | Closing Balance |
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How EPF Compounding and EPS Pension Math Works
The Employees' Provident Fund and Miscellaneous Provisions Act, 1952 is India's premier social security architecture for salaried employees. Understanding how your monthly salary deductions compound over 30+ years is the bedrock of retirement planning.
100% of your 12% deduction (computed strictly on Basic Salary + Dearness Allowance) is deposited into your personal EPF account. This earns the official 8.25% p.a. sovereign interest rate.
Your employer matches your 12% contribution, but it is split: 8.33% goes to the Employees' Pension Scheme (capped at ₹1,250/mo under the ₹15,000 wage ceiling), and the remaining 3.67% plus excess goes to your EPF.
EPF enjoys Exempt-Exempt-Exempt (EEE) status under Section 80C. However, interest on employee contributions exceeding ₹2.5 Lakh per financial year (or ₹5 Lakh if no employer contribution) is subject to income tax under Section 10(11).
Frequently Asked Questions (FAQs)
What is the current EPF interest rate for FY 2024-25 and 2025-26? ▼
The Central Board of Trustees (EPFO) has declared an interest rate of 8.25% p.a., credited annually at the end of the financial year based on monthly running balances.
How is the 12% employer contribution split between EPF and EPS? ▼
Of the employer's 12% contribution, 8.33% goes toward the Employees' Pension Scheme (EPS) capped at ₹1,250/month (based on the statutory ₹15,000 wage ceiling). The remaining 3.67% (plus any excess over ₹1,250) is credited to your EPF account.
Is EPF maturity tax-free? ▼
Yes, EPF falls under the Exempt-Exempt-Exempt (EEE) tax regime if withdrawn after 5 years of continuous service. However, under Section 10(11), interest on annual employee contributions exceeding ₹2.5 Lakh is taxable.
How is the monthly EPS pension calculated at retirement? ▼
Under EPS 1995, Monthly Pension = (Pensionable Salary × Pensionable Service) ÷ 70, provided you have completed at least 10 years of eligible service. A 2-year bonus service is credited if service reaches 20+ years.