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India Retirement Rates & Limits 2026

Official rates sourced from Income Tax Act 1961, EPFO, PFRDA, Finance Act 2024.

Last updated: 2026-06-27

Current Rates

Parameter	Value
Epf Interest Rate 2023 24	8.25
Ppf Interest Rate Current	7.1
Nps Default Equity Return Assumption	10
Inflation Assumption Long Term	5

Parameter	Value
Section 80c Deduction Limit	150,000
Section 80ccd 1b Additional Nps Limit	50,000
Epf Contribution Rate Employee Percent	12
Epf Contribution Rate Employer Percent	12
Ppf Annual Contribution Max	150,000
Ppf Annual Contribution Min	500
Ppf Maturity Years	15
Nps Minimum Annual Contribution Tier1	1,000
Nps Annuity Purchase Minimum Percent	40
Nps Tax Free Lump Sum Percent	60
Senior Citizen Savings Scheme Max	3,000,000
Gratuity Tax Exempt Max	2,000,000
Retirement Age Private Sector	58
Retirement Age Government	60

›EPF balance including accumulated interest is fully tax-exempt at withdrawal if the employee has completed 5 continuous years of service.
›PPF falls under the EEE (Exempt-Exempt-Exempt) category. The 15-year lock-in can be extended in 5-year blocks indefinitely. Interest is compounded annually and credited on 31 March each year.
›From April 2019, the entire 60% lump sum withdrawal from NPS at age 60 is tax-exempt (was 40% before). The 40% annuity purchase amount is also partly tax-efficient depending on annuity type.
›The new income tax regime (default from FY2024-25) does not allow 80C or 80CCD(1B) deductions. Taxpayers who choose the old regime can claim EPF, PPF, NPS, and other retirement deductions.