EPF Calculator: Planning for a Secure Retirement
The **Employee Provident Fund (EPF)** is one of the most effective retirement planning tools for salaried individuals in India. Controlled by the EPFO, it offers tax-free returns and safety of capital.
How EPF Works?
- Employee Share: 12% of Basic + DA is deducted from your salary.
- Employer Share: 12% of Basic + DA is contributed by the company.
- 3.67% goes to your EPF account.
- 8.33% goes to the Employee Pension Scheme (EPS) account.
EPF Interest for FY 2024-25
The government recently set the interest rate at 8.25% per annum. This interest is calculated monthly but credited to the account once a year at the end of the financial year.
Is the maturity amount tax-free?
Yes, if you withdraw your EPF after at least 5 years of continuous service, the total amount (Principal + Interest) is completely tax-exempt. However, contributions above ₹2.5 Lakh per year (Employee only) are subject to tax on interest earned on the excess amount.