Why is my employer's contribution to the fund lower than mine?

Because most of it is diverted. Of the employer's twelve percent, 8.33% goes to the Employees Pension Scheme and only about 3.67% reaches your provident fund balance. Your own twelve percent goes in whole.

Is the interest rate fixed?

No. It is declared each year and has drifted down over the past two decades. Assuming today's rate for a thirty-year career is optimistic.

InvestmentretirementIndia only

EPF Calculator

Employee Provident Fund corpus at withdrawal, with the employer split shown honestly. Only about 3.67% of the employer's 12% reaches the fund; the rest goes to the pension scheme, and calculators that ignore that overstate a career by a third.

Also called: pf calculator, provident fund calculator.

Fund at withdrawal

₹1,16,56,380

₹1,16,56,380 after 25 years. You contributed ₹34,36,351 and your employer ₹10,50,951, and interest added ₹71,69,078, which is 61.5% of the final balance.

Your contributions

₹34,36,351

Employer's share reaching the fund

₹10,50,951

Total paid in

₹44,87,302

Interest earned

₹71,69,078

Interest as a share of the corpus

61.5%

Employer money diverted to the pension scheme

₹23,85,400

Monthly income if annuitised at 6%

₹58,282

How this is calculated

An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.

Balance over time

Hover or drag for values

BalanceContributed

Year by year

Year	You	Employer	Interest	Balance
1	₹72,000	₹22,020	₹3,878	₹97,898
2	₹75,600	₹23,121	₹12,149	₹2,08,768
3	₹79,380	₹24,277	₹21,499	₹3,33,924
4	₹83,349	₹25,491	₹32,038	₹4,74,803
5	₹87,516	₹26,765	₹43,885	₹6,32,970
6	₹91,892	₹28,104	₹57,170	₹8,10,136
7	₹96,487	₹29,509	₹72,034	₹10,08,165
8	₹1,01,311	₹30,984	₹88,631	₹12,29,092
9	₹1,06,377	₹32,534	₹1,07,130	₹14,75,132
10	₹1,11,696	₹34,160	₹1,27,715	₹17,48,703
11	₹1,17,280	₹35,868	₹1,50,585	₹20,52,437
12	₹1,23,144	₹37,662	₹1,75,959	₹23,89,202

Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

Both sides contribute twelve percent of basic pay plus dearness allowance. Yours goes entirely into the fund. The employer's is split: 8.33% is diverted to the Employees Pension Scheme, so roughly 3.67% joins your fund balance. Interest is credited on the running balance, and because contributions arrive monthly this credits it on the average balance over the year rather than on the opening figure, which is the closer approximation to how the fund actually works.

each year: opening balance + contributions + interest on the average balance

B: Balance (currency)
C: Year's contributions (currency)
r: Interest rate (decimal)

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

a twenty-five year career

Monthly basic pay plus dearness allowance: ₹50,000
Your contribution rate: 12%
Interest rate credited: 8.25%
Years until you withdraw: 25
Salary growth a year: 5%
Balance already in the fund: ₹0

Fund at withdrawal₹1,16,56,380

Structural: contributions plus interest must reconcile to the corpus

Open this example

one year with no growth is a single contribution plus half a year of interest

Monthly basic pay plus dearness allowance: ₹50,000
Your contribution rate: 12%
Interest rate credited: 8.25%
Years until you withdraw: 1
Salary growth a year: 0%
Balance already in the fund: ₹0

Fund at withdrawal₹97,898

12% of 6,00,000 of annual basic, worked by hand

Open this example

an existing balance carries forward

Monthly basic pay plus dearness allowance: ₹50,000
Your contribution rate: 12%
Interest rate credited: 0%
Years until you withdraw: 1
Salary growth a year: 0%
Balance already in the fund: ₹5,00,000

Fund at withdrawal₹5,94,020

boundary: at a zero rate the corpus is opening plus contributions exactly

Open this example

Method and limits

What it assumes

Contributions are on full basic pay rather than restricted to the statutory wage ceiling.
The interest rate holds for the whole period, which it does not; it is declared annually.
No withdrawals or loans against the balance.

What it deliberately does not model

The pension scheme benefit itself is a separate calculation with its own formula and is not valued here.
Voluntary contributions above twelve percent belong on the VPF calculator.
Taxation of interest on contributions above the annual threshold is not applied.

Sources

EPFO. Employees Provident Funds and Miscellaneous Provisions Act, 1952 (primary government)

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

Why is my employer's contribution to the fund lower than mine?: Because most of it is diverted. Of the employer's twelve percent, 8.33% goes to the Employees Pension Scheme and only about 3.67% reaches your provident fund balance. Your own twelve percent goes in whole.
Is the interest rate fixed?: No. It is declared each year and has drifted down over the past two decades. Assuming today's rate for a thirty-year career is optimistic.