Is the correct PF being deducted from your salary? Check your monthly contribution and balance yourself: – ..
News India Live, Digital Desk: Employees Provident Fund Organization (EPFO) for the financial year 2025-26 The interest rate has been announced for. EPFO’s Central Board of Trustees (CBT) 11 March 2026 According to the latest update, the interest rate has been increased for the third consecutive year. 8.25% It is recommended to retain it.
If you are a working employee, then it is important for you to know how the money deducted from your salary every month and the company’s contribution together increases your retirement fund.
Easy formula for PF calculation (The Basic Formula)
Your PF calculation Basic Salary + Dearness Allowance (DA) It is done on salary and not on total gross salary.
Employee Contribution: Your basic salary + DA 12% The portion goes directly into your EPF account.
Employer Contribution: The company also pays for your basic salary + DA. 12% contributes, but it is divided into two parts:
3.67%: Deposited in your EPF account.
8.33%: Goes to the Employees Pension Scheme (EPS).
Understand with an example (Calculation Example)
Suppose your Basic Salary + DA = ₹30,000 Is.
| Description | calculation | Deposit amount (₹) |
|---|---|---|
| Your Contribution (12%) | $30,000 \times 12\%$ | ₹3,600 |
| Company’s EPF share (3.67%) | $30,000 – 3,600$ (ie left) | ₹2,350* |
| Company Pension Share (EPS) | Capped | ₹1,250 |
| Total monthly PF deposits | (Your 12% + Company’s 3.67%) | ₹5,950 |
Budget 2026 and new rules of EPFO
recently appeared budget 2026 Some important proposals have been made regarding Provident Fund (PF):
Limit of ₹7.5 lakh: If the total contribution of the employer to PF, NPS and superannuation fund in a year ₹7.5 lakh If it exceeds Rs. 500, then the excess amount will be taxed.
Tax on interest: If the employee’s annual contribution ₹2.5 lakh (without company contribution), then income tax will have to be paid on the interest received on that additional amount.
8.25% interest rate: The interest rate for 2025-26 has been fixed at 8.25%. Although interest is calculated every month, it is credited to your account at the end of the year (usually between June-August 2026).
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