The EPF is part of the retirement planning in India and this offers a Government backed, low risk savings scheme that helps millions to secure their financial future. In 2025, the EPFO has provided the New EPF Contribution Limit 2025 and new rules that will help in calculating the EPF. The EPF Scheme is managed by EPFO. Both the employee and employer contributes to the fund and fosters a culture of savings and financial discipline. The EPF Interest Rates Changes 2025, contributions limits will provide details on how much an employee can save.
New EPF Contribution Limit 2025
The New EPF Contribution Limit 2025 is the wage cap that is set at Rs. 15000 only. Every year, the EPFO reviews the interest rates and contribution limit. This year also the interest rates and limits have been reviewed but there are no changes. The employee chooses to contribute their 10% or 12% basic salary to EPF and the employer can choose to contribute this much amount and out of this 8.33% goes to EPS and remaining goes to EPF. The employer contributes 0.5% to EDLI. Let’s know more on the EPF Interest Rates 2025 with the limits and calculation.
Employee Provident Fund Contribution Scheme 2025
| Post Title | New EPF Contribution Limit 2025 |
| Year | 2025 |
| Country | India |
| Name of the Scheme | Employee Provident Fund |
| Managed By | EPFO |
| Who Contributes | Employee & Employers |
| Employee Contribution | 12% of basic salary |
| Employer Contribution | 12% of basic salary |
| Interest Rate For FY 2024-25 | 8.25% Per Annum |
| Wage Ceiling | Rs. 15,000 Per Month |
| Category | News |
| Official Web Page | www.epfindia.gov.in |
EPF Contributions Limit For 2025
The 12% of the basic salary is the contribution made by employee and employer. But there is a wage ceiling in place which is set at Rs. 15,000 per month. Beyond this amount, the contributions are not mandatory. This means that the employees who are earning over this threshold, their contributions are calculated based on this Rs. 15,000 limit unless both the employee and employers mutually agreed to contribute on the higher salary.
EPF Interest Rates Changes 2025
The interest rate on this EPF Balance is a critical factor influencing the growth of retirement savings. For the Fiscal year 2024- 25, the EPFO has maintained the interest rate at 8.25%, consistent with the previous year. The Ministry of Finance and the EPFO Central Board of Trustees decide this rate each year. Although the interest is computed on a monthly basis, it is credited to the EPF account on March 31st, the end of the fiscal year. Let’s here know changes in Interest Rates from previous years:
| Year | EPF Interest Rates Changes 2025 |
| 2024 – 2025 | 8.25% |
| 2023 – 2024 | 8.25% |
| 2022 – 2023 | 8.15% |
| 2021 – 2022 | 8.55% |
| 2020 – 2021 | 8.55% |
| 2019 – 2020 | 8.65% |
| 2018 – 2019 | 8.65% |
| 2017 – 2018 | 8.55% |
| 2016 – 2017 | 8.65% |
How To Calculate EPF Interest Rate & Contributions
EPF Contribution Calculation: Let’s assume the following:
- Basic Salary: Rs. 30,000 Per Month
- Employee EPF Contribution: 12% of the Rs. 30,000 = Rs. 3,600 Per Month
- Employer EPF Contribution:
- Towards Employee Pension Scheme: 8.33% of Rs. 15,000 = Rs. 1,250 Per Month
- Towards EPF: Rs. 3,600 – Rs. 1,250 = Rs. 2,350 Per Month
- Total Monthly Contributions to EPF: Rs. 3,600 + Rs. 2,350 = Rs. 5,950 Per Month
EPF Interest Calculation: The interest is computed on a monthly basis, it is credited to the EPF account on March 31st, the end of the fiscal year.
- Annual Interest Rate: 8.25%
- Monthly Interest Rate: 8.25%/12 = 0.6875%
Let’s calculate the interest for the first few months:
April:
- Opening Balance: Rs. 0
- Total Contribution: Rs. 5,950
- Closing Balance: Rs. 5,950
- Interest For April: Rs. 0 (Since Opening Balance is Zero)
May:
- Opening Balance: Rs. 5,950
- Total Contribution: Rs. 5,950
- Closing Balance: Rs. 11,900
- Interest For April: Rs. 11,900*0.6875% = Rs. 81.81
This process continues for each month. The entire amount of interest is issued to the EPF Account at the fiscal year end.
FAQ Related To New EPF Contribution Limit 2025
Every salaried employee who earns upto Rs. 15,000 per month can qualify.
Typically, 12% of basic salary is contributed.
The employer typically contributes 12%.
8.33% to the EPS and 3.67% to EPF.
For 2024- 25 FY, 8.25% is the interest rate.
The employees can know their EPF Balance through EPFO Portal, UMANG App.
This UAN is for the EPF Members.