Understanding the EPF Calculator
The Employees' Provident Fund (EPF) is a mandatory retirement savings scheme for salaried employees in India. This calculator helps you project your total retirement corpus by considering your monthly salary, age, expected salary growth, and the prevailing EPF interest rate.
How It Works:
- Employee Contribution: You contribute 12% of your basic salary to your EPF account every month.
- Employer Contribution: Your employer matches your 12% contribution. Of this, 8.33% goes to the Employees' Pension Scheme (EPS) (up to a wage ceiling) and the remaining 3.67% goes to your EPF account. For simplicity in corpus calculation, our tool considers the full employer EPF portion contributing to growth.
- Interest: The government declares a fixed interest rate each year, which is compounded annually on your EPF balance.
- Salary Growth: The calculator factors in an expected annual salary increase to provide a more realistic projection of your future contributions and final corpus.