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EPF Calculator: The Employees' Provident Fund (EPF), managed by the Employees' Provident Fund Organization (EPFO), is a savings account that keeps growing silently. If money is not withdrawn from it before retirement, it surprises you on retirement.

A part of your salary is deposited in this account and the company also contributes from your side. This account gives you a strong retirement fund so that life after the job can be spent comfortably, without the tension of money.

Employees often underestimate the importance of the Employees' Provident Fund (EPF) account at the beginning of the job. The reason for this is the initial low basic salary and consequently low contribution to the account. However, as the career progresses and there is an annual salary increase, the contribution to EPF also increases. If you continue to contribute to EPF regularly and in a disciplined manner, this account can become a big financial support at the time of retirement.

What is an EPF account?

EPF is a retirement saving scheme run by the Employees Provident Fund Organization (EPFO). A part of your salary is deposited in it every month and the same amount is given by your company. Currently, 8.25% annual interest is being received on this fund, which can play an important role in raising a large fund (Retirement Corpus) in the long run.

How is money deposited in the EPF account?

For EPFO ​​​​members, every month 12% of the basic salary plus DA is deposited in their EPF account. The employer (company) also deposits the same amount. However, the company's contribution is divided into two parts: out of 12%, 8.33% goes to the pension fund (EPS), and 3.67% is deposited in the EPF account. Thus, a good amount is deposited in the EPF account every month from your salary and company contribution.

EPF Calculator: How many funds will be created on retirement-

Case 1: Suppose your age is 25 years and your basic salary plus DA is 15,000.

Retirement age: 58 years

Basic salary + DA: Rs 15,000

Contribution from employees: 12%

Contribution from company: 3.67%

Annual increment - 10%

Interest on PF: 8.25% per annum

Total contribution: Rs 62,70,161 (about Rs 62.70 lakh)

Fund on retirement: Rs 1,64,23,721 i.e. about 1.64 crore

Case 2: Basic plus DA at the age of 25 is Rs 25,000

Retirement age: 58 years

Basic salary + DA: Rs 25,000

Contribution from employee: 12%

Contribution from company: 3.67%

Annual increment - 10%

Interest on PF: 8.25% p.a.

Total contribution: Rs 1,15,39,861 (around Rs 1.15 crore)

Fund on retirement: around Rs 3.12 crore

Disclaimer: This content has been sourced and edited from Navbharat Times. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.