EPF Maturity Calculation: What should be your contribution to generate retirement retirement corpuses of Rs 2 crore, Rs 3 crore, Rs 4 crore, and Rs 5 crore
EPF Retirement Planning: This is a retirement scheme where both the employee and the employer contribute to the former's EPF account. The minimum contribution from either side is Rs 1,800 on a basic salary of Rs 15,000, the maximum is 12 per cent of the basic salary and dearness allowance (DA). The employer's 12 per cent contribution is allocated to EPF (3.67 per cent) and Employees' Pension Scheme (8.33 per cent).
EPF Retirement Corpus Calculator: Retirement planning is necessary for everyone seeking a comfortable life post retirement. There are many market-linked and non-linked investment avenues, which, if used in the long run, can help an investor generate a sizeable retirement corpus. Employees' Provident Fund (EPF) is one of them. This is a retirement scheme where both the employee and the employer contribute to the former's EPF account. The minimum contribution from either side is Rs 1,800 on a basic salary of Rs 15,000, the maximum is 12 per cent of the basic salary and dearness allowance (DA). The employer's 12 per cent contribution is allocated to EPF (3.67 per cent) and Employees' Pension Scheme (8.33 per cent). The current EPF interest rate is 8.25 per cent per annum. EPF contributions up to Rs 1.50 lakh in a financial year provide tax benefits under Section 80C of the Income Tax Act, 1961. In this write-up, we will tell you about your estimated monthly EPF contribution to generate retirement corpuses of Rs 2 crore, Rs 3 crore, Rs 4 crore, and Rs 5 crore.
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EPF contribution conditions
Let's put some basic conditions here. We will assume that you will start contributing at the age of 25 and will do so till 60 years of age. You will contribute 12 per cent of your basic salary and DA.
EPF contribution conditions
Your salary will increase by 5 per cent every year, and in that proportion, you will also increase your EPF contribution. Also, the calculations exclude the employer's EPS contribution of 8.33 per cent.
Minimum starting basic salary to generate Rs 2 crore retirement corpus
The minimum estimated starting basic salary to generate a Rs 2 crore retirement corpus should be Rs 27,750.
Minimum starting basic salary to generate Rs 2 crore retirement corpus
Your contribution in 35 years will be Rs 49.82,906, the estimated interest will be Rs 1,50,40,666, and the estimated retirement corpus will be Rs 2,00,23,572.
Minimum starting basic salary to generate Rs 3 crore retirement corpus
The minimum estimated basic salary to get a Rs 3 crore retirement corpus should be Rs 41,430.
Minimum starting basic salary to generate Rs 3 crore retirement corpus
Your contribution in 35 years will be Rs 74,66,306, the estimated interest will be Rs 2,25,36,766, and the estimated retirement corpus will be Rs 3,00,03,072.
Minimum starting basic salary to generate Rs 4 crore retirement corpus
The minimum estimated basic salary to generate a Rs 4 crore retirement corpus should be Rs 56,000.
Minimum starting basic salary to generate Rs 4 crore retirement corpus
Your contribution in 35 years will be Rs 1,00,91,841, the estimated interest will be Rs 3,04,61,860, and the estimated retirement corpus will be Rs 4,05,53,701.
Minimum starting basic salary to generate Rs 5 crore retirement corpus
The minimum estimated basic salary to generate a Rs 5 crore retirement corpus should be Rs 69,045.
Minimum starting basic salary to generate Rs 5 crore retirement corpus
Your contribution in 35 years will be Rs 1,24,42,713, the estimated interest will be Rs 3,75,57,858, and the estimated retirement corpus will be Rs 5,00,00,571.