EPFO calculator: Know how on Rs 25,000 basic salary you can accumulate over Rs 2 crore corpus at retirement
EPFO calculator: Both the employee and employer contribute 12% of the employee's basic salary and dearness allowance to the EPF.
EPF is an employee provident fund in which both employer and employee contribute 12 per cent of the basic salary plus dearness allowance (DS) every month. The employees' provident fund organisation (EPFO) is a non-constitutional body that encourages employees to save funds for retirement.
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Employee and employer contribution towards EPF
Both the employee and employer contribute 12% of the employee's basic salary and dearness allowance to the EPF.
Benefits of EPF
EPF provides retirement benefits to employees on their retirement in the form of a pension. It also provides insurance benefits.
What is the current interest rate on EPF?
Currently, 8.15 per cent interest rate is being provided on EPF.
How to access EPF services?
You can access through online portal of EPF India from anywhere in the world.
Schemes Offered Under EPFO
- Employees Provident Funds Scheme 1952 (EPF)
- Employees' Pension Scheme 1995 (EPS)
- Employees' Deposit Linked Insurance Scheme 1976 (EDLI)
What is UAN?
EPFO assigns each member a 12-digit number known as the UAN (universal account number). Even if an employee changes employers, his or her UAN remains the same.
How is interest in EPF calculated?
The monthly interest on EPF programs is computed by dividing the annual rate by 12.
EPFO increases withdrawal limit for personal needs
Early this week, EPFO increased the withdrawal limit of PF. If you also plan to withdraw your PF for personal needs, you can withdraw up to Rs 1 lakh. Earlier, the PF withdrawal limit was Rs 50 lakh. Read More
You can withdraw PF for the following needs:
Marriage purpose
Education
For specially-abled individuals
In case of unemployment
Medical emergencies
Home renovation etc.
Documents required for PF withdrawal
UAN (Universal Account Number)
Identity and address proof
Bank account details of the EPF subscriber
Cancelled cheque with IFSC code and account number
Know how a Rs 25,000 salary can give you over Rs 2 crore corpus at retirement
If your monthly basic salary is Rs 25,000 per month and you start investing at 23 years of age then you can accumulate a fund of Rs 2,18,43,497 at retirement.
Know Calculations of accumulating more than Rs 2 crore fund
Suppose, you get a 5 per cent salary hike yearly and investing Rs 25,000 per month. That way, your total investment will be Rs 50,63,538 starting at 23 till retirement. On this, you will get an interest of Rs 1,67,79,959 at an 8.25 per cent annual rate. The total maturity amount will be Rs Rs 2,18,43,497.