EPF Retirement Corpus: How much fund you can generate on Rs 6,000, Rs 9,000 and Rs 11,000 monthly contributions?
Discover how monthly EPF contributions of Rs 6,000, Rs 9,000, and Rs 11,000 can grow over 15 years with the current 8.25% interest rate. Learn about UAN benefits and EPF withdrawal rules.
Planning for retirement through the Employee Provident Fund (EPF) is an effective way to secure your financial future. This article explores how monthly contributions of Rs 6,000, Rs 9,000, and Rs 11,000 can grow into a substantial corpus over 15 years with an 8.25% interest rate. In addition to interest earnings, we cover essential topics like UAN benefits, EPF withdrawal rules for unemployment and marriage, and how both employee and employer contributions play a crucial role in building your retirement savings.
EPF Contribution Structure
Under the EPF scheme, both the employee and employer contribute 12% of the employee’s basic salary. At retirement, the employee receives a lump sum consisting of these contributions along with accrued interest.
Current EPF Interest Rate
The EPF currently offers an interest rate of 8.25%, which is credited to the employee's Provident Fund account annually. This amount can be accessed upon retirement or during specific conditions, such as job termination.
EPF Universal Account Number (UAN)
Employees are assigned a 12-digit UAN, which centralises multiple EPF accounts from different employers under one number. This UAN remains the same throughout their career, simplifying account management.
Benefits of UAN
Consolidation of multiple EPF accounts under one UAN
- Seamless fund transfers and withdrawals
- Online access to passbooks and SMS alerts
- KYC updates and balance checks
- Downloadable UAN EPF passbook
EPF Interest Earnings on Monthly Contributions
Rs 6,000 Contribution
With a monthly contribution of Rs 6,000 for 15 years, your EPF balance will grow to approximately Rs 21.7 lakh at maturity.
Rs 9,000 Contribution
A monthly contribution of Rs 9,000 for 15 years will yield around Rs 34.56 lakh.
Rs 11,000 Contribution
If you contribute Rs 11,000 per month for 15 years, your retirement corpus will reach nearly Rs 43.98 lakh.
EPF Withdrawal Rules
Unemployment: If you are unemployed for over a month, you can withdraw 75% of your EPF balance. After two months of unemployment, you may withdraw the remaining 25%.
Marriage
Employees can withdraw 50% of their EPF balance for marriage purposes after completing seven years of service.