PF / VPF Passbook

Employee EPF and employer EPF are both calculated on full basic salary (uncapped by the ₹15,000 wage ceiling). VPF is also calculated on full basic salary and earns the same rate as EPF. Only EPS is capped — 8.33% of basic, up to a maximum of ₹541/month before September 2014 (8.33% of the then ₹6,500 wage ceiling) and ₹1,250/month from September 2014 onward (8.33% of the current ₹15,000 wage ceiling) — and the remainder of the employer's 12% goes to employer EPF. EPS accumulates separately and earns no interest, so it is excluded from the corpus total. Interest is computed monthly on the running balance (opening balance for the full year, and each month’s contribution for the months remaining after it is credited at that month’s end — e.g. a September contribution earns interest for Oct–Mar, 6 months) and credited once at financial year end, matching EPFO’s actual crediting method. Basic and VPF are set per financial year — every month in that year uses the same values, so a raise or a VPF change takes effect from the FY you set it in.