EPF calculator 2026: PF balance at 58 with the ₹25,000 wage ceiling

Where the 24% goes

You put 12% of your basic pay plus DA into EPF. Your employer also puts in 12%, but splits it: 8.33% of your pay, up to the wage ceiling, goes to the Employees' Pension Scheme (EPS), and only the rest goes to your EPF account. At the ₹25,000 ceiling that is ₹2,083 a month to EPS and ₹917 to EPF. If your basic is above the ceiling and PF is worked out on full basic, the whole extra employer share goes to EPF.

The ₹25,000 wage ceiling

The Union Cabinet approved raising the EPF wage ceiling from ₹15,000 to ₹25,000 on 16 September 2026, the first change since 2014, and the Labour Ministry notified it the next day. Contributions are compulsory on pay up to ₹25,000. Above that, contributing on the higher amount is optional. For a basic of ₹25,000 or more, your compulsory share rises from ₹1,800 to ₹3,000 a month, so take-home pay falls a little and retirement savings rise.

How interest is worked out

EPFO works out interest each month on the balance at the start of that month and adds it to the account once a year, after the rate is approved. This calculator does the same, so money added during a month starts earning from the next month. The account keeps earning interest even in years with no contribution, until it becomes inoperative, usually around 58.

The pension figure

EPS pension is pensionable wages times years of service, divided by 70, with at least 10 years of service and a minimum of ₹1,000 a month. Under EPS 2026 each period counts at the wage ceiling then in force, so this calculator counts your service so far at up to ₹15,000 and service from now on at up to ₹25,000, using your final pay in place of the 60-month average, and adds the 2 years of weightage given for 20 or more years of service. It is a rough guide; EPFO's own figure can differ.

Guides

Questions

What is the EPF interest rate now?

8.25% a year for 2025-26, the same as 2024-25. EPFO's central board recommends the rate each year and the Central Government approves it.

Is EPF interest taxable?

Interest on your own contributions above ₹2.5 lakh a year (₹5 lakh if your employer does not contribute) is taxable. Withdrawals before 5 years of continuous service are taxable, with 10% TDS on ₹50,000 or more if you give your PAN.

Does the ₹25,000 ceiling reduce my take-home pay?

If your basic pay is above ₹15,000 and PF was worked out on ₹15,000, your share rises with the new ceiling, up to ₹1,200 more a month at ₹25,000. That money goes into your EPF account, so it is saved, not lost.

How much can I withdraw before retirement?

Under the EPF Scheme, 2026 you can take out up to 75% of your balance for set reasons once you have 12 months of service; 25% must stay in. See our guide to the new withdrawal rules.

Sources

For illustration only. The interest rate is set every year and your employer's PF wage base may differ. Check your EPFO passbook for real figures. Saifu is not connected with EPFO.