EPF is the Employees' Provident Fund. In a covered job, the employer pays 12% of wages and you pay the same. Some notified establishments use 10%. The 2026 scheme, G.S.R. 525(E) of 29 June 2026, is the rulebook. It replaced the 1952 scheme when it was published.
The wage ceiling is ₹25,000 a month from 2026-09-17. Statutory contributions are worked out on that ceiling when pay is higher. You can still add a voluntary amount above it. The ceiling is not a ban.
Part of the employer’s share does not stay in this account. 8.33% of wages up to the ceiling goes to the pension fund. At the ceiling, your share is ₹3,000, the pension slice is ₹2,083, and ₹917 of the employer’s money stays in EPF. A year of your own contribution at that ceiling is ₹36,000, inside the ₹1,50,000 cap of Section 123 (this was Section 80C). PPF and ELSS share that cap. Section 202 does not allow the deduction. The in-hand salary calculator shows the deduction from pay.
Taking money out
A partial withdrawal, paragraph 46, is at least ₹1,000 and must leave 25% behind. On a sample balance of ₹80,000, ₹20,000 stays and ₹60,000 is the most a partial claim can pay. Illness, education, marriage, housing, and special circumstances are the reasons, usually after 12 months. A full withdrawal under paragraph 49 pays the entire credit, including the 25%, on retirement after 55 or the other exits in the scheme.
Schedule XI excludes the accumulated balance after 5 years, and in a few other cases such as ill-health or a transfer. If it does not, Section 392(7) (this was Section 192A) deducts 10% on a full settlement of ₹50,000 or more. On the sample, that collection is ₹8,000. It is not the final tax, and it is not how a partial withdrawal is taxed.
Interest is credited on the monthly running balance. 8.25% is the Central Board’s recommendation for FY 2025-26, to be notified before it is credited. It is not a rate already notified for a withdrawal in FY 2026-27, and it is not the PPF rate on the small-savings page.
The EPF withdrawal guide has the full list, including Form 19, Form 31 and Form 10C as the portal still names them. The income tax calculator does not withdraw the balance. It is where a deduction, when the old regime allows it, changes the tax. The PPF calculator is a different account with a different lock-in.
Questions
How much of my EPF can I take while I am still in the job?
A partial withdrawal leaves 25% of contributions and interest in the account. You may take the eligible balance above that, from ₹1,000 upward, for the reasons in the 2026 scheme. The full balance needs a paragraph 49 exit.
Is EPF interest the same as PPF interest?
No. PPF follows the small-savings notification. EPF interest is fixed by the Central Government with the Central Board. 8.25% is the recommendation for FY 2025-26, not the PPF rate and not a small-savings page.
When is the EPF balance tax-free?
Schedule XI excludes it after 5 years of continuous service, or if the job ended for ill-health, closure, or a cause beyond your control. A transfer to a new employer’s fund can also keep the exclusion. Section 392(7) is a 10% collection when a taxable full settlement is ₹50,000 or more.
Sources
Figures checked 30 Oct 2026.