This page gathers the retirement figures salaried savers ask about most: the EPF interest rate, the NPS tax deductions for tax year 2026–27 and the share of an NPS balance that can be taken as cash at exit. Each row gives the figure, who it applies to and from when, and a link to the official source. Figures change with each Finance Act, notification and quarterly review, so check the date and the source before you rely on a number. The explanations sit in the Academy lessons linked at the end of the page.
EPF interest rate
| Item | Figure | Who and when it applies | Source |
|---|---|---|---|
| EPF interest rate | 8.25% a year | On EPF accumulations for the financial year 2025–26; recommended by the EPF Central Board of Trustees on 2 March 2026, for crediting once notified by the Government | PIB, Ministry of Labour and Employment, 2 March 2026 |
NPS tax deductions
| Item | Figure | Who and when it applies | Source |
|---|---|---|---|
| Employer's NPS contribution, new regime | Deductible up to 14% of salary (basic pay plus dearness allowance), whoever the employer is | Salaried individuals taxed under the new regime; tax year 2026–27 | Income-tax Act 2025, section 124(1) and (2); section 202(2) |
| Employer's NPS contribution, old regime | Up to 14% of salary where the employer is the Central or a State Government; up to 10% for any other employer | Salaried individuals who opt out of the new regime; tax year 2026–27 | Income-tax Act 2025, section 124(1) |
| Your own NPS contribution | Up to 10% of salary (20% of gross total income if you are not an employee), inside the overall ₹1,50,000 limit for Schedule XV items | Old regime only; tax year 2026–27 | Section 123; Schedule XV, item 1(y) |
| Additional own NPS contribution | Up to ₹50,000 more; this limit is shared with what a parent or guardian pays into a minor's NPS account (NPS Vatsalya) | Old regime only; tax year 2026–27 | Income-tax Act 2025, section 124(3) and (4) |
| Employer contributions to retirement funds, overall cap | ₹7,50,000 a year in total across recognised provident fund, NPS and approved superannuation fund; the excess is taxed as a perquisite | Employees, both regimes; tax year 2026–27 | CBDT Budget 2026 FAQs, provident funds (section 17(1)(h)) |
NPS exit limits
| Item | Figure | Who and when it applies | Source |
|---|---|---|---|
| Normal exit, All Citizen Model and corporate subscribers | Up to 80% as a lump sum; at least 20% used to buy an annuity | Non-government subscribers; from 16 December 2025. Normal exit is after 15 years or at 60, whichever is earlier (All Citizen Model), or on superannuation (corporate) | PFRDA press release, 19 December 2025; Exits and Withdrawals Regulations, 2015 (consolidated) |
| Normal exit, smaller balances | Corpus up to ₹8 lakh: may be withdrawn in full (lump sum or systematic withdrawal). Over ₹8 lakh up to ₹12 lakh: up to ₹6 lakh as a lump sum, the rest by systematic unit redemption over at least six years or an annuity | Non-government subscribers at normal exit; from 16 December 2025. The 80%/20% route remains available | PFRDA press release, 19 December 2025 |
| Normal exit, government sector | Up to 60% as a lump sum; at least 40% used to buy an annuity | Government-sector subscribers; from 16 December 2025 | PFRDA press release, 19 December 2025 |
| Premature exit, All Citizen Model and corporate subscribers | Up to 20% as a lump sum; at least 80% used to buy an annuity. Corpus up to ₹5 lakh: may be withdrawn in full | Non-government subscribers leaving before normal exit; from 16 December 2025 | PFRDA press release, 19 December 2025 |
What PFRDA's rules allow you to take out is a separate question from how the withdrawal is taxed. Check the tax treatment separately before you choose an exit option.
How to use these figures
Limits tell you the most that counts; whether a deduction actually saves tax depends on your full calculation under each regime. These lessons explain the method:
- NPS tax benefits: which contributions count in each regime and how to measure the saving.
- NPS exit choices: finding your exit route and comparing lump sum, annuity and phased withdrawal.
- EPF, PPF, NPS and mutual funds: how the retirement accounts fit together.
- Reading your payslip: EPF and pension contributions as they appear on a salary slip.
Last checked against sources: 23 October 2026. This is the date the figures above were compared with the official sources linked in each row. It is not a professional review of anyone's tax or investment position.