PF calculator on salary
PF is calculated on basic plus dearness allowance, not on gross salary.
Assumptions
Interest is projected at the current 8.25% rate for the whole period. EPFO revises it annually.
₹ 79,90,056 contributed, ₹ 1,58,32,611 earned as interest over 28 years.
Monthly contributions
Your employer's 12% is not all provident fund. A slice goes to the pension scheme and never appears in your PF balance, which is why the corpus is smaller than doubling your own contribution suggests.
How the 12% + 12% actually splits
On monthly wages of ₹ 50,000:
- Your 12%, ₹ 6,000, goes entirely to EPF.
- Your employer's 12%, ₹ 6,000, splits.
- ₹ 1,250 goes to the pension scheme, capped at ₹ 1,250 a month.
- Only ₹ 4,750 joins your PF balance.
So ₹ 10,750 a month compounds at 8.25%, reaching ₹ 2.38 Cr by 58 if you start at 30, of which ₹ 1.58 Cr is interest.
Corpus at 58 by wage level
Starting at age 30, with a 5% average annual increment.
| Monthly wages | To EPS | Into PF / month | Corpus at 58 |
|---|---|---|---|
| ₹ 15,000 | ₹ 1,250 | ₹ 2,350 | ₹ 60.02 L |
| ₹ 25,000 | ₹ 1,250 | ₹ 4,750 | ₹ 1.11 Cr |
| ₹ 35,000 | ₹ 1,250 | ₹ 7,150 | ₹ 1.62 Cr |
| ₹ 50,000 | ₹ 1,250 | ₹ 10,750 | ₹ 2.38 Cr |
| ₹ 75,000 | ₹ 1,250 | ₹ 16,750 | ₹ 3.66 Cr |
| ₹ 1,00,000 | ₹ 1,250 | ₹ 22,750 | ₹ 4.93 Cr |
The EPS column stops rising once wages pass ₹15,000, because the pension contribution is capped there. Everything above it goes to your PF instead.
Frequently asked questions
How is PF calculated on salary?
You contribute 12% of basic pay plus dearness allowance. Your employer contributes another 12%, but that half is split, with 8.33% of wages going to the Employees' Pension Scheme and only the remainder joining your PF balance.
Is the full employer 12% credited to my PF account?
No, and this is the most common misunderstanding. Up to ₹ 1,250 a month of the employer's share goes to the pension scheme instead. On ₹50,000 of wages, ₹ 1,250 goes to EPS and only ₹ 4,750 reaches your provident fund.
What is the current EPF interest rate?
8.25% for FY 2025-26, notified by the EPFO Central Board of Trustees. It is reviewed annually, so a long projection should be treated as indicative rather than a promise.
What is the ₹15,000 PF ceiling?
The statutory wage ceiling. An employer may limit contributions to 12% of ₹15,000, that is ₹ 1,800 a month from each side, regardless of your actual basic pay. Many private employers instead contribute on full basic, which is why this calculator offers both.
What is VPF and is it worth it?
Voluntary Provident Fund is an extra contribution you can make above the mandatory 12%, earning the same interest rate. Your employer does not match it. It is attractive as a low-risk debt allocation, but the money is locked until retirement, and interest on contributions above ₹2.5 lakh a year is taxable.
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