How To Do
EPF Calculator (Rule 9D-aware)
Project your Employee Provident Fund corpus at the FY 2025-26 rate of 8.25%. Unlike most calculators online, this one splits your interest into taxable vs non-taxable under Rule 9D — the rule that bites high earners and VPF contributors.
How EPF works (in 30 seconds)
- You contribute 12% of Basic + DA, all of which goes to your EPF account.
- Employer also contributes 12%, split: 8.33% to EPS (pension, capped at ₹15K basic, max contribution ₹1,250/month) + 3.67% to EPF.
- Interest is 8.25% for FY 2025-26, credited annually on the closing balance. Compounded monthly internally.
- Tax-free at withdrawal if you complete 5 continuous years of service (across employers, if PF transferred).
What is Rule 9D?
Introduced in 2021, Rule 9D splits your EPF account into two notional buckets:
- Non-taxable bucket — interest on contributions up to ₹2.5L/year (₹5L for government employees with no employer contribution).
- Taxable bucket — interest on contributions above that threshold gets taxed at your slab rate as "income from other sources".
If you contribute exactly 12% of Basic+DA and your basic is below ₹1,73,611/month, you stay under the ₹2.5L limit and Rule 9D doesn't bite. VPF (Voluntary PF) contributions and high earners regularly cross it.
FAQ
Should I do VPF?
Until your own contribution stays at ₹2.5L/year, VPF gives you an 8.25% tax-free return — better than most fixed-income alternatives. Above ₹2.5L, the interest becomes taxable, dropping the post-tax yield to ~5.7% in the 30% slab. At that point, equity MFs or NPS may be better.
Is the employer's contribution counted toward the ₹2.5L Rule 9D limit?
No. Rule 9D applies only to your contributions (12% statutory + any VPF). Employer's 3.67% to EPF is separate.
What about EPS (pension)?
Employer contributes 8.33% of capped basic (₹15K, so ₹1,250/month max) to your EPS account. EPS does not earn interest. You receive a monthly pension after retirement (formula: pensionable salary × pensionable service ÷ 70). This calculator focuses on EPF, not EPS.
Is EPF withdrawal tax-free?
Yes, if you complete 5 continuous years of service. Below 5 years, the entire withdrawal is taxable at your slab. PF transfers between employers count toward continuity — don't withdraw between jobs unless you have to.
How do I add EPF to my full retirement plan?
Combine the EPF corpus shown here with your equity SIP corpus (use our SIP Calculator) and PPF (use our PPF Calculator). Together they typically form 70-80% of an Indian salaried retirement plan.