Employees' Provident Fund (EPF) 2026

The Employees' Provident Fund (EPF) is a savings scheme for people who work for a salary. It is run by the Employees' Provident Fund Organisation (EPFO). Since 29 June 2026, its rules are in the Employees' Provident Fund Scheme, 2026, made under the Code on Social Security, 2020.

Every month, a part of your pay goes into your PF account, and your employer adds the same amount. A part of the employer's share goes to the Employees' Pension Scheme (EPS), which pays you a monthly pension later. The rest earns interest in your EPF account until you retire.

1. Step 1You pay 12%Cut from your salary every month, on basic pay + DA.
2. Step 2Employer pays 12%8.33% of up to ₹25,000 goes to EPS; the rest to EPF.
3. Step 3Interest every year8.25% for FY 2025-26, added after the year ends.
4. Step 4Money at retirementThe full balance at 58, plus an EPS pension.

The wage ceiling went up from ₹15,000 to ₹25,000 on 17 September 2026. This was the first change since 2014. More workers now come under EPF, and the employer's pension share can now be worked out on a higher salary.

Both shares are worked out on your basic pay and dearness allowance (DA), not on your full salary. Your 12% goes into your EPF account. Your employer's 12% is split in two:

• To EPS (pension): 8.33% of wages up to ₹25,000, so at most ₹2,083 a month.
• To your EPF account: whatever is left of the 12%.
• After 58: EPS contributions stop, and the employer's full 12% goes to EPF.

Monthly split when the employer pays 12% on your full basic + DA:

Many employers pay their 12% only on wages up to ₹25,000. Then the most the employer pays is ₹3,000 a month, of which ₹2,083 goes to EPS and ₹917 to EPF. Your payslip shows which way your employer pays.

VPF lets you put more of your salary into your PF account, on top of the 12%. You can go up to 100% of basic pay + DA in all. Ask your employer (HR or payroll) to start it.

• VPF earns the same interest as EPF, 8.25% for FY 2025-26.
• Your employer does not add anything to your VPF.
• The same withdrawal and tax rules apply. Interest on your own contributions above ₹2,50,000 a year is taxable.

If Priya adds 10% VPF, her EPF at 58 grows from ₹1,60,70,177 to ₹2,44,38,516.

The EPF rate is fixed once a year. EPFO's Central Board of Trustees recommends it, and the government notifies it. For FY 2025-26 it is 8.25%.

• Interest is worked out every month on your balance at the end of the month.
• The total for the year is added to your account once, after the financial year ends and the rate is notified.
• Next year, you earn interest on that interest too.
• No interest is paid on the EPS (pension) part. EPS gives a pension instead.

See every past rate on the EPF interest rate page.

EPF balance at 58, starting from zero, with a 5% raise every year, 8.25% interest and the employer paying 12% on the full basic.

For your own salary and balance, use the EPF calculator.

UAN means Universal Account Number. It is a 12-digit number that stays with you for life. Every PF account you get in each job is linked to the same UAN. Your employer gives you the UAN when you join.

1. Step 1Get your UANFrom your employer, or on your payslip.
2. Step 2Activate itOn the EPFO member portal or the UMANG app, with an Aadhaar OTP.
3. Step 3Complete KYCLink Aadhaar, PAN and bank account. Your employer approves them.
4. Step 4Add a nomineeThrough e-nomination on the member portal.

Your name, date of birth and gender must match in Aadhaar, PAN and your EPFO record. A mismatch is the most common reason a claim is rejected.

1. Step 1UMANG appOpen EPFO, then View Passbook, and log in with your UAN and OTP.
2. Step 2EPFO passbookOn the EPFO website, under Services, then For Employees, then Member Passbook.
3. Step 3SMSSend "EPFOHO UAN ENG" to 7738299899. Use HIN instead of ENG for Hindi.
4. Step 4Missed callCall 9966044425. The call ends on its own and an SMS comes back.

SMS and missed call work only from the mobile number registered with your UAN, and only after your UAN is activated and linked with Aadhaar, PAN or your bank account. Both are free.

• Give your UAN to the new employer. Do not open a new UAN.
• In most cases, when your Aadhaar is verified, the old balance moves to the new account on its own. If it does not, apply for a transfer online (Form 13) on the EPFO member portal.
• A transfer keeps your service continuous. This matters for tax (the 5-year rule) and for your EPS pension (the 10-year rule).
• Closing the account at each job change makes the money taxable if your service is under 5 years.

New withdrawal rules apply under the EPF Scheme, 2026. The old list of 13 reasons is now 3: essential needs (illness, education, marriage), housing, and special situations. Full details are in our guide on PF withdrawal rules 2026.

• You need 12 months of membership for any partial withdrawal.
• At least 25% of your balance must stay in the account.
• Education: up to 10 times in your career. Marriage: up to 5 times.
• Claims up to ₹5,00,000 are settled automatically, usually in about three working days.
• The EPS (pension) part cannot be taken out while you are working.

How much you can withdraw while working:

If you lose your job, for a PF balance of ₹5,00,000:

At retirement: the full balance can be taken at 58. To apply, log in to the EPFO member portal or UMANG, go to Online Services, then Claim, and submit with an Aadhaar OTP.

• ₹1.5 LDeduction on your shareOld regime, Section 123 (earlier 80C)
• ₹2.5 LTax-free interest limitOn your own contributions a year
• 5 yearsService for tax-free withdrawal
• 10% TDSOn taxable withdrawals of ₹50K+Higher without PAN

• Your contribution: in the old tax regime, your 12% and VPF count for the deduction under Section 123 (earlier 80C), up to ₹1,50,000 a year with other tax-saving investments. The new regime does not give it.
• Interest: tax-free on your own contributions up to ₹2,50,000 a year (₹5,00,000 if the employer does not contribute). Interest on the part above it is taxed at your slab rate. Your own 12% crosses ₹2,50,000 only when basic + DA is above about ₹1,73,612 a month, or earlier with VPF.
• Employer's share: tax-free, unless the employer's contributions to EPF, NPS and superannuation together are more than ₹7,50,000 in a year.
• Withdrawal: tax-free after 5 years of continuous service, counting earlier jobs whose PF was transferred. Before that, the withdrawal is taxable. EPFO cuts 10% TDS if the amount is ₹50,000 or more and your PAN is linked, and more if it is not. If your total income is below the taxable limit, give Form 121 (it replaced Forms 15G and 15H from April 2026).
• Partial withdrawals while you are working, for the allowed reasons, are not taxed.

If a PF member dies, the family gets three things:

1. Step 1The PF balancePaid to the nominee, or legal heirs if there is none. Claim with Form 20.
2. Step 2EDLI cover up to ₹7 LLife insurance for members who die while in service. Claim with Form 5 IF.
3. Step 3Family pensionA monthly pension from EPS for the spouse and children. Claim with Form 10D.

• EDLI (Employees' Deposit Linked Insurance) is free for you. Your employer pays 0.5% of wages up to the ceiling.
• The cover is 35 times your average monthly wage (up to the ceiling), plus 50% of your average PF balance (up to ₹1,75,000).
• It is at least ₹2,50,000 with 12 months of continuous service, and at least ₹50,000 with less. The most is ₹7,00,000.
• At the new ceiling, 35 × ₹25,000 is already ₹8,75,000, so many families now reach the ₹7,00,000 maximum. EPFO has said the maximum stays at ₹7,00,000 until it reviews the EDLI fund.
• Add a nominee through e-nomination on the member portal. You can name more than one and set each person's share. If you have a family, the nominee must be a family member.

Read more on the PPF and NPS pages, and see how your pension from EPS works on the Employees' Pension Scheme page.