Employees’ Provident Fund (EPF) 2026
Mandatory retirement savings for salaried employees, with employer matching.
Rates for July–September 2026 (Q2 FY 2026-27) · Updated 27 September 2026What is Employees’ Provident Fund (EPF)?
The Employees’ Provident Fund, managed by the Employees’ Provident Fund Organisation (EPFO) under the EPF & MP Act, 1952, is compulsory for establishments with 20 or more employees. Both employee and employer contribute 12% of basic salary + DA; part of the employer share goes to the Employees’ Pension Scheme (EPS). Interest for FY 2025-26 has been notified at 8.25%. Since October 2025, EPFO has merged partial-withdrawal rules into three categories with a 12-month service requirement.
EPF at a glance
| Particular | Details |
|---|---|
| Interest rate | 8.25% (FY 2025-26) |
| Employee contribution | 12% of basic + DA |
| Employer contribution | 12%: 3.67% EPF + 8.33% EPS (EPS capped at ₹15,000 wage = ₹1,250) |
| EDLI insurance | Up to ₹7 lakh life cover |
| UAN | Universal Account Number — one for life |
| Partial withdrawal | After 12 months of service; 25% of contributions kept as minimum balance |
| Final settlement | After 12 months of unemployment (EPF); 36 months for pension |
| Retirement age | 58 years |
Government-notified terms for July–September 2026 (Q2 FY 2026-27). Verify the latest notification before investing.
Features & benefits of EPF
Doubles your savings effectively.
Interest tax-free (except on employee contribution above ₹2.5 lakh/year).
Free life insurance.
Monthly pension after 10 years’ service.
UAN portal and UMANG for balance, claims, transfers.
Eligibility — who can invest?
- Employees of establishments with 20+ employees (mandatory up to ₹15,000 wage; voluntary above)
- International workers under specific agreements
How does EPF work?
- Contributions are deducted monthly from salary.
- Employer remits both shares via ECR.
- Interest calculated on monthly running balance, credited after the FY.
Tax benefits of EPF
| Stage | Tax treatment |
|---|---|
| Employee contribution | Section 80C / 123 deduction (old regime) |
| Employer contribution | Exempt up to 12%; combined employer contribution to EPF+NPS+superannuation above ₹7.5 lakh taxable |
| Interest | Tax-free; interest on employee contribution above ₹2.5 lakh/yr (₹5 lakh if no employer contribution) taxable |
| Withdrawal | Tax-free after 5 years of continuous service; TDS if withdrawn earlier and above ₹50,000 |
Section 80C of the Income-tax Act, 1961 is Section 123 of the Income-tax Act, 2025 from tax year 2026-27. Deductions apply only in the old tax regime.
Withdrawal, premature closure & maturity rules
| Situation | Rule |
|---|---|
| Essential needs | Illness, education (up to 10 times), marriage (up to 5 times) |
| Housing | Purchase / construction / repayment |
| Special circumstances | No reason required |
| Limit | Up to 100% of eligible balance, keeping 25% minimum |
| Final settlement | After 12 months of unemployment / at retirement |
At maturity
| Option | What happens |
|---|---|
| Retirement at 58 | Full EPF + EPS pension |
EPF returns — worked examples
| Basic + DA | Employee 12% | Employer to EPF | Employer to EPS | Total to EPF/month |
|---|---|---|---|---|
| ₹15,000 | ₹1,800 | ₹550 | ₹1,250 | ₹2,350 |
| ₹30,000 | ₹3,600 | ₹2,350 | ₹1,250 | ₹5,950 |
| ₹50,000 | ₹6,000 | ₹4,750 | ₹1,250 | ₹10,750 |
EPS contribution is capped at 8.33% of ₹15,000.
EPF calculator
How to open / invest in EPF
- Employer registers you and generates UAN.
- Activate UAN at the member portal.
- Link Aadhaar, PAN and bank (KYC).
- Add nominee (e-nomination).
Documents required
- Aadhaar
- PAN
- Bank account + IFSC
Important forms
| Form | Purpose |
|---|---|
| Form 11 | Declaration on joining |
| Form 19 | Final PF settlement |
| Form 10C | EPS withdrawal |
| Form 31 | Partial withdrawal |
| Form 13 | Transfer |
| Form 20 | Claim by family on death |
| Form 10D | Monthly pension |
| Form 5IF | EDLI claim |
Advantages & limitations
- Employer matching
- High tax-free rate
- EDLI cover
- Online portability
- Liquidity restrictions
- Taxable interest above ₹2.5 lakh contribution
- Pension capped
Mistakes to avoid
- Not transferring old PF on job change
- Mismatched KYC causing claim rejection
- Withdrawing before 5 years and paying tax
EPF vs other saving schemes
| Scheme | Rate | Tenure | Minimum | Tax |
|---|---|---|---|---|
| EPF | 8.25% p.a. (FY 2025-26) | Till retirement (58) | 12% of basic + DA | EEE (conditions apply) |
| VPF | 8.25% p.a. (same as EPF, FY 2025-26) | Linked to your EPF account | Any amount above the 12% statutory share | EEE (₹2.5 lakh interest rule applies) |
Frequently asked questions
What is the EPF rate for FY 2025-26?
8.25%.
Can I withdraw full PF?
Final settlement after 12 months of unemployment or retirement; partial withdrawals keep 25% minimum.
Is EPF interest taxable?
Only on employee contribution above ₹2.5 lakh per year.
Information is for education and comparison. Interest rates are notified by the Government every quarter and scheme rules can change — confirm with India Post, your bank, EPFO or PFRDA before investing. FinancePortal is not a financial or tax adviser.