Frequently Asked Questions
EPF interest is calculated monthly based on the running balance of your account. However, the total accumulated interest is credited annually to your account at the end of the financial year (March 31st).
Generally, the EPF maturity amount is tax-free if the employee has completed at least five continuous years of service. However, contributions over a certain threshold (currently ₹2.5 lakh or ₹5 lakh for government employees per year) may attract tax on the interest earned. Always consult a tax advisor for your specific situation.
The employer’s mandatory 12% contribution is split into two parts:
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3.67% goes to the EPF account (which earns interest and is used in this calculator).
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8.33% goes to the Employee Pension Scheme (EPS), which provides a monthly pension after retirement and has a maximum cap of ₹1,250 per month.
Your EPF account is portable. You must transfer your accumulated balance from your previous UAN to your new UAN when you change employers. Continuous service is key for tax exemption, so ensuring the transfer is done maintains the continuity of your PF account.
