EPF Corpus Calculation: What will be your retirement corpus size on Rs 15,000, Rs 25,000, and Rs 35,000 basic salaries?
Retirement Planning: The minimum EPF contribution from the employer's side is Rs 1,800, while the maximum is up to 12 per cent of the basic salary and dearness allowance (DA). Deposits up to Rs 1.50 lakh in a financial year provide tax benefits under Section 80C of the Income Tax Act. The interest earned and the maturity amount are also tax free.
EPF Calculator: Employees' Provident Fund (EPF) is a retirement scheme that helps private sector employees build a retirement corpus. The employee and the employer both contribute to the former's EPF account. The minimum contribution from the employee's side is Rs 1,800, while the maximum is up to 12 per cent of the basic salary and dearness allowance (DA). Deposits up to Rs 1.50 lakh in a financial year provide tax benefits under Section 80C of the Income Tax Act. The interest earned and the maturity amount are also tax-free. The fund falls in the exempt-exempt-exempt (EEE) category. In this write-up, we will tell you how much retirement corpus you can build with basic salaries of Rs 15,000, Rs 25,000, and Rs 35,000.
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EPF contribution conditions
Here, we are expecting to invest a full 12 per cent EPF contribution from the employee's side. We are expecting that their monthly salary will increase by 5 per cent in a year.
EPF contribution conditions
The starting age of their EPF contribution is 25 years, and the last age is 60 years. So, the investment horizon is 35 years.
Estimated EPF retirement corpus on Rs 15,000 basic salary
If you start with Rs 15,000 monthly basic salary and the expected increase in salary is 5 per cent, your estimated investment in 35 years will be Rs 27,03,243.
Estimated EPF retirement corpus on Rs 15,000 basic salary
The estimated interest earned will be Rs 81,59,652, and the estimated retirement corpus will be Rs 1,08,62,895.
Estimated EPF retirement corpus on Rs 25,000 basic salary
If you start with a Rs 25,000 monthly basic salary and expect a 5 per cent annual rise in the salary, your estimated investment will be Rs 45,05,360.
Estimated EPF retirement corpus on Rs 25,000 basic salary
The estimated interest earned will be Rs 1,35,99,128, and the estimated retirement corpus will be Rs 1,81,04,488.
Estimated EPF retirement corpus on Rs 35,000 basic salary
If you start with a Rs 35,000 monthly basic salary, and your salary raises by 5 per cent a year, your estimated investment will be Rs 63,07,473.
Estimated EPF retirement corpus on Rs 35,000 basic salary
The estimated interest earned will be Rs 1,90,38,937, and the estimated retirement corpus will be Rs 2,53,46,410.