EPF Calculation: What can your retirement corpus be if you start with a basic salary of Rs 25,000, Rs 30,000, or Rs 35,000?

EPF Calculator: Employees' Provident Fund (EPF) is a retirement scheme for private sector employees that is aimed at helping them generate a retirement corpus. The employee and the employer both contribute to the former's EPF account. One can contribute a minimum of Rs 1,800 and a maximum of 12 per cent of their basic salary and dearness allowance (DA). The employer also needs to match the same amount and deposit it into the employee's EPF account. However, the employer's 12 per cent contribution is deposited in two ways. While 3.67 per cent of its proportion goes to the EPF, 8.33 per cent goes to the Employee Pension Scheme (EPS). The EPS contribution helps the employee get a monthly pension post retirement. Employees' Provident Fund Organisation (EPFO) offers an 8.25 per cent compound return on EPF contributions. The EPF falls under the exempt-exempt-exempt (EEE) category, where deposits up to Rs 1.50 lakh in a financial year, the interest earned, and the maturity amount are tax-free. This makes it a unique retirement tool for a number of employees. 

EPF maturity at Rs 30,000 basic monthly salary

Let's put some conditions in place to get a clear picture of the calculations.

We are assuming one will start contributing at the age of 25.

Since one's salary is most likely to increase with time, we are assuming a five per cent annual jump in the salary, hence an annual rise in the EPF amount tool.

Also, we assume that an employee will contribute a full 12 per cent of their basic salary and DA to their EPF account till the retirement age of 60 years.

The calculation also includes a 3.67 per cent contribution from the employer's side.

Given these circumstances, your EPF contribution in 35 years will be Rs 45,05,360; the interest earned will be Rs 1,35,99,128; and the maturity amount will be Rs 1,81,04,488.

EPF maturity amount on basic salary of Rs 30,000 a month

Given all the conditions mentioned above, the total EPF contribution will be Rs 54,06,168, the interest earned will be Rs 1,63,18,569, and the maturity amount will be Rs 2,17,24,737.

EPF maturity amount basic salary of Rs 35,000 a month

If your basic monthly salary is Rs 35,000, your total invested money till retirement will be Rs 63,07,473, the interest earned will be Rs 1,90,38,937, and the maturity amount will be Rs 2,53,46,410.