Securing Hannav Ledger...
Securing Hannav Ledger...
Estimate your retirement corpus, employer vs employee contributions, and total tax-free compound interest accumulated in your EPF account.
Enter variables to compute real-time projections
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EPF Corpus = Employee EPF + Employer EPF + Accumulated InterestEmployee contributes 12% of basic + DA. Employer contributes 12% of basic + DA, split as: 8.33% (up to ₹15,000 monthly basic salary, i.e. max ₹1,250) goes to EPS (pension fund) and the remaining 3.67% (plus excess basic contributions) goes to EPF.
The Employees' Provident Fund (EPF) is a statutory retirement benefit scheme mandated by the Employees' Provident Funds and Miscellaneous Provisions Act 1952. Both the employee and the employer contribute 12% of the employee's basic salary + Dearness Allowance (DA) to the EPF. However, the employer's 12% is split: (a) 8.33% of the basic salary (capped at a maximum basic salary of ₹15,000 per month, i.e., up to ₹1,250/month) is diverted to the Employees' Pension Scheme (EPS) to provide a lifetime monthly pension post-retirement. (b) The remainder (3.67%, plus any excess for salaries above ₹15,000) is deposited into the EPF account.
Interest is determined annually by the EPFO (Central Board of Trustees) and is calculated monthly based on the opening balance of the EPF account. New deposits made during a month do not earn interest in that calendar month; they are added to the principal for the next month's interest accrual. The accumulated monthly interest is credited to the account once a year on March 31st. This calculator assumes a default 5% annual salary growth to reflect standard real-world career progression.
1. Tax Exemption: Employee contributions up to ₹1.5 Lakhs qualify for tax deductions under Section 80C. 2. Employer contribution: Exempt from tax up to ₹7.5 Lakhs per year (combined limit of PF, NPS, and Superannuation). 3. Interest: Completely tax-free, provided the employee's annual EPF contributions do not exceed ₹2.5 Lakhs (in case of no employer contribution, the limit is ₹5 Lakhs). Any interest earned on contributions exceeding ₹2.5 Lakhs is taxable as salary income. 4. Withdrawal: Tax-free if withdrawn after 5 years of continuous service.
Complete Withdrawal: Allowed post retirement (age 58) or if unemployed for 2 or more consecutive months. | Partial Withdrawals (Advances): Allowed for specific purposes like purchasing/building a house, home loan repayment, children's higher education/marriage, or medical emergencies. The withdrawal limit and eligibility vary depending on the years of service completed.
Example 1: Monthly Basic = ₹50,000, DA = ₹0, Current Balance = ₹0, Interest = 8.25% p.a., Tenure = 25 Years (with 5% annual hike). Employee EPF Share = ₹28.62 Lakhs. Employer EPF Share = ₹22.65 Lakhs. Interest = ₹78.89 Lakhs. Retirement Corpus = ₹1.30 Crore. | Example 2: Basic = ₹15,000, DA = ₹0, Current Balance = ₹0, Rate = 8.25%, Tenure = 20 Years. Employee Contribution = ₹4.32 Lakhs. Employer Contribution = ₹1.32 Lakhs. Pension EPS Share = ₹3.00 Lakhs. Interest Earned = ₹7.87 Lakhs. EPF Corpus = ₹13.51 Lakhs. | Example 3: Basic = ₹1,00,000, DA = ₹10,000, Current Balance = ₹5,00,000, Rate = 8.25%, Tenure = 10 Years. EPF Corpus = ₹43.90 Lakhs.