EPF calculator: Age 25 years and basic salary is Rs 25,000? Know how much retirement corpus you can make at retirement
EPF provides retirement benefits to employees on their retirement in the form of a pension. It also provides insurance benefits.
EPF or employee provident fund is a government-backed retirement scheme in which both employer and employee contribute up to 12 per cent of the basic salary plus dearness allowance (DA) every month. The employees' provident fund organisation (EPFO) is a non-constitutional body that encourages employees to save funds for retirement.
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Benefits of EPF
EPF provides retirement benefits to employees on their retirement in the form of a pension. It also provides insurance benefits.
What is the current interest rate on EPF?
Currently, 8.25 per cent interest rate is being provided on EPF.
EPF services
You can access the online portal of EPF India from anywhere in the world.
Schemes Offered Under EPFO
Employees Provident Funds Scheme 1952 (EPF)
Employees' Pension Scheme 1995 (EPS)
Employees' Deposit Linked Insurance Scheme 1976 (EDLI)
What is UAN?
EPFO assigns each member a 12-digit number known as the UAN (universal account number). Even if an employee changes employers, his or her UAN remains the same.
How is interest in EPF calculated?
The monthly interest on EPF programs is computed by dividing the annual rate by 12.
EPFO increases withdrawal limit for personal needs
Early this week, EPFO increased the withdrawal limit of PF. If you also plan to withdraw your PF for personal needs, you can withdraw up to Rs 1 lakh. Earlier, the PF withdrawal limit was Rs 50 lakh.
You can withdraw PF for the following needs:
Marriage purpose
Education
For specially-abled individuals
In case of unemployment
Medical emergencies
Home renovation etc.
Documents required for PF withdrawal
UAN (Universal Account Number)
Identity and address proof
Bank account details of the EPF subscriber
Cancelled cheque with IFSC code and account number
Know how a Rs 25,000 basic salary can give you over Rs 2 crore corpus at retirement
If your monthly basic salary is Rs 25,000 per month and you start investing at 25 years of age then you can accumulate a fund of Rs 81,04,488 at retirement.
Know Calculations of accumulating more than Rs 2 crore fund
On a yearly hike of 5 per cent in salary, you can invest Rs 45,05,360 starting at 25 till retirement age of 60. On this, you will get an interest of Rs 1,35,99,128 at an 8.25 per cent annual rate. The total maturity amount will be Rs 1,81,04,488.