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FreePF & GRATUITY

EPF & Gratuity Calculator

Calculate Employee Provident Fund retirement corpus and statutory Gratuity payouts under Indian law.

100% client-side. Nothing you type is uploaded or stored on a server.

Two numbers matter more than any raise to a long-term employee: the EPF balance at retirement and the gratuity paid at exit. Both grow quietly, both have rules that changed recently, and both are routinely underestimated. This calculator projects your EPF corpus to retirement — employee and employer contributions on the new ₹25,000 wage ceiling, annual salary growth, and interest at the current 8.25% — and computes gratuity under the Payment of Gratuity Act with the 15/26 formula, the tax-free limit and the fixed-term rule.

EPF: how the corpus builds

  • You contribute 12% of basic + DA; your employer contributes 12% too, of which 8.33% (capped on the wage ceiling) goes to the pension scheme (EPS) and the rest to EPF.
  • The wage ceiling is ₹25,000 from 17 September 2026 (earlier ₹15,000). Employers may contribute on full basic voluntarily; many cap at the ceiling. The change and who is newly covered are in EPF wage ceiling is now ₹25,000.
  • Interest is credited annually at the EPFO-declared rate (8.25% for 2024-25 and 2025-26), compounded on monthly running balances.
  • Withdrawals after five years of continuous service are tax-free; earlier withdrawals are taxable and attract TDS above ₹50,000. EPFO 3.0 now allows UPI-based withdrawals and auto-settlement for many claims — see EPFO 3.0: UPI withdrawals, face-auth UAN.

A 28-year-old with ₹30,000 basic, 8% annual increments and full 12% + 12% contributions ends up with roughly ₹2.5–3 crore by 60 at 8.25% — the calculator shows the year-by-year path and how much is interest.

Gratuity: the formula and the limits

Under the Payment of Gratuity Act (establishments with 10 or more employees):

Gratuity = 15 × last drawn basic + DA × completed years of service ÷ 26

  • Eligibility: five years of continuous service (not required on death or disability). Six months or more in the final year rounds up to a full year.
  • Fixed-term employees are eligible on a pro-rata basis after one year under the Labour Codes.
  • Tax-free up to ₹20 lakh for private-sector employees (₹25 lakh for central government); amounts above are taxed as salary.
  • Employers provision 4.81% of basic in CTC to fund this — which is why it appears in your offer letter but not your payslip.

For establishments not covered by the Act, the common formula is 15 × salary × years ÷ 30. Edge cases — contract staff, resignation at 4 years 240 days, death cases — are in Gratuity rules in India.

How to use the calculator

  1. EPF tab: enter current basic + DA, your age and retirement age, the employee/employer percentages (12% default), expected annual increment and the interest rate; add your current balance if any. Toggle the ₹25,000 ceiling cap.
  2. Gratuity tab: enter last drawn basic + DA, joining and leaving dates (or years and months), and whether your employer is covered by the Act.
  3. Read the corpus, contributions vs interest, and the gratuity amount with the taxable portion, if any.
  4. Compare with a SIP at the same monthly amount to see the value of the employer's matching contribution.

Things that quietly reduce the numbers

  • Employers capping PF at the ceiling while your basic grows — ask for contributions on full basic.
  • Job changes without transferring the PF account (the UAN makes this easy; the balance keeps earning either way).
  • Leaving at 4 years and 10 months — a few weeks short of gratuity eligibility.
  • Salary structures with low basic to shrink PF and gratuity; the Labour Codes' 50% wage rule limits this.

Frequently asked questions

Is gratuity paid if I resign?

Yes, after five years of continuous service with the same employer (4 years and 240 days counts as five in many jurisdictions following the Madras High Court view). It is paid on resignation, retirement, termination, death or disability.

What is the current EPF interest rate?

8.25% per annum, as declared by EPFO for 2024-25 and continued for 2025-26. The calculator lets you change it for projections.

Does the employer's 12% all go to EPF?

No. 8.33% of wages up to the ceiling goes to the Employees' Pension Scheme; the balance goes to EPF. The calculator shows the split.

Is gratuity taxable?

Exempt up to ₹20 lakh for private employees (₹25 lakh for central government). The excess is taxed as salary in the year received.

Can I withdraw EPF for a house or medical emergency?

Yes, partial withdrawals are allowed for housing, medical treatment, education, marriage and unemployment, subject to service-length and amount limits; most are now processed automatically under EPFO 3.0.