Till the retirement in the EPF account, a big corpus gradually becomes.
The employees Provident Fund (EPF) is a great scheme for retirement benefits to salaried employees.
In the EPF account, there is a contribution from both the employee and the company ie the company.
This contribution in the EPF account of the employees is 12-12 percent of the basic salary (+DA).
If your salary is Rs 25,000 and your age is 30 years, then on retirement you can have a potential fund of 1.68 crores.
If... Basic Salary+DA= ₹25,000 Present age: 30 years Retirement age: 58 years
Employee Monthly Contribution = 12% Employer Monthly Contribution = 3.67% Interest rate on EPF = 8.1% Annual salary growth = 10%
Employee Contribution: 50.51 lakhs Employer contribution: 16.36 lakhs Total contribution: 69.87 lakh Total Maturity Fund: 1.68 Crore
The amount of 12 percent of the employer is deposited in two parts. (8.33% amount in employee pension and 3.76% in EPF account)
Interest is calculated on the basis of the monthly running balance in the PF account and is deposited at the end of the year.
The EPF interest rate has been fixed at 8.1 percent per annum for the financial year 2022-23 by the Government of India.