Quick answer
EPF currently earns 8.25% (FY 2025-26). You contribute 12% of basic + DA. Your employer also pays 12%, but 8.33% of up to ₹15,000 (₹1,250 a month) goes to the EPS pension, and the rest goes to EPF. With ₹30,000 basic at age 28, 6% yearly hikes and 8.25% interest, you would have about ₹1.84 Cr at 58.
Key takeaways
- EPF rate for FY 2025-26: 8.25% (Notified by EPFO in July 2026).
- Interest on your own contributions above ₹2.5 lakh a year (₹5 lakh if there is no employer contribution) is taxable.
- Transfer, don’t withdraw, when you change jobs. Your UAN keeps one account.
EPF contribution split
| Contribution | Rate | Goes to |
|---|---|---|
| Employee | 12% of basic + DA | EPF |
| Employer | 3.67% (+ the part above ₹15,000 wage) | EPF |
| Employer | 8.33% of wage up to ₹15,000 (max ₹1,250/month) | EPS (pension) |
Frequently asked questions
What is the EPF interest rate for 2025-26?
8.25%, the same as the previous two years. EPFO notified it in July 2026.
Is EPF withdrawal taxable?
Withdrawal after 5 years of continuous service is tax-free. Before 5 years, it is taxable and TDS applies if the amount is over ₹50,000.
Should I contribute to VPF?
VPF earns the same 8.25% as EPF with EEE treatment, up to the ₹2.5 lakh total contribution limit for tax-free interest. It is one of the best safe returns available, but money is locked till retirement (partial withdrawals allowed for specific needs).
Sources & methodology
Formulas follow the standard methods used by Indian banks, fund houses and government schemes. Rates and tax rules were checked against official sources on 1 October 2026. Read our methodology.
This calculator gives an estimate for planning purposes. Actual returns, tax and eligibility depend on your situation and on product terms. It is not financial advice.