EPF Calculation: What can your retirement corpus be on starting basic salaries of Rs 15,000, Rs 20,000, and Rs 25,000?

EPF Calculation: Employee retirement schemes are aimed at helping them build a sizeable corpus by the end of their jobs to meet their daily expenses. In the same direction, the Employee Provident Fund (EPF) is a central government-run scheme where the employee and the employer contribute in equal proportions. The Employees' Provident Fund Organisation (EPFO) provides 8.25 per cent annual compound interest on EPF contributions. An employee can contribute a maximum of 12 per cent of their basic salary and dearness allowance (DA) to the EPF account. The employer matches the same amount and deposit in the employee's EPF account. However, only 3.67 per cent of the employer's money goes to the employee's EPF. The rest, 8.33 per cent, goes to Employee Pension Scheme (EPS). The minimum monthly contribution from the employer's side to the employee's EPF is Rs 1,800 a month. In this write-up, know what your retirement corpus will be if your starting basic salary is Rs 15,000, Rs 20,000, or Rs 25,000. We will assume 25 years as the age when an employee will start contributing to EPF and 60 years as the age of retirement. We will also assume that the employee will use the full limit of 12 per cent to the EPF contribution and will have a five per cent annual jump in their salary.

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