EPF Corpus Calculation: Know what Rs 5000, Rs 7,500 and Rs 10,000 monthly investments in EPF can give you on retirement
EPF Calculator: Employees' Provident Fund (EPF) is a retirement scheme for private sector employees where they can generate corpus and also get monthly pension post retirement. The employer and the employee make monthly contribution to the former's EPF account.
EPF Retirement Corpus Calculator: Retirement planning is important for everyone, be it government sector employees or private sector ones. For government sector employees, schemes such as Old Pension System (OPS), New Pension System (NPS), Unified Pension System (UPS), General Provident Fund (GPF) are some of the options. NPS is open to private sector employees too, but the majority of them opt for Employees' Provident Fund (EPF), as the scheme is mandated by the government for establishments having more than 20 employees. In EPF, the employee and the employer contribute to the employee's EPF account on a monthly basis. In this write-up, know more about EPF and what can be estimated EPF retirement corpus on Rs 5,000, Rs 7,500, and Rs 10,000 monthly contributions.
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EPF interest rate
EPF provides 8.25 per cent compound interest rate to its account holders.
EPF contribution conditions
An employee can contribute a minimum of Rs 1,800 (12 per cent of Rs 15,000 basic salary) and a maximum of 12 per cent of the basic salary and dearness allowance (DA).
EPF contribution conditions
The employer also matches the amount and contributes to the employee's EPF account. However, the employer's one-thirds (8.33 per cent amount goes to the Employees' Pension Scheme (EPS) and the rest, 3.67 per cent, goes to EPS.
EPF tax benefits
EPF deposits up to Rs 1.50 lakh in a financial year provide tax benefits under Section 80C of the Income Tax Act, 1961. The interest earned and the maturity amount are also tax-free.
EPF withdrawal
An employee can withdraw EPF at 58 years of age, on completion of 10 years of service, or in case of resignation from a company. However, they can contribute to their EPF account till 60.
EPF calculation conditions
In our projections, we will calculate the retirement corpus of a person starting EPF contributions at 25 years and ending at 60 (35 years in total). We are taking Rs 5000, Rs 7,500, and Rs 10,000 as monthly investments.
EPF retirement corpus if one starts with Rs 5,000/m contribution
On Rs 5,000 EPF monthly contribution for 35 years, the investment will be Rs 21,00,000, and the estimated retirement corpus will be Rs 1,18,33,963.13.
EPF retirement corpus if one starts with Rs 7,500/m contribution
On Rs 7,500 EPF monthly contribution for 35 years, the investment will be Rs 31,50,00 and the estimated retirement corpus will be Rs 1,77,50,944.7.
EPF retirement corpus if one starts with Rs 10,000/m contribution
On Rs 10,000 EPF monthly contribution for 35 years, the investment will be Rs 42,00,000, and the estimated retirement corpus will be Rs 2,36,67,926.27.