Employee Provident Fund maturity projector.
EPF Corpus at Retirement
₹2.35 Cr
Total contributions: ₹85.21 L
Contributions
₹85.21 L
Interest Earned
₹1.5 Cr
Employee Provident Fund (EPF) is governed by EPFO under the EPF & MP Act, 1952. Both employee and employer contribute 12% of basic + DA. The employer's 12% is split: 8.33% to EPS (pension, capped at ₹15,000 basic) and 3.67% to EPF balance.
Each year: Balance = (Balance + 12% × salary × 12 + 3.67% × salary × 12) × (1 + r), with salary stepping up by your annual growth rate.
EPFO declared 8.25% for FY2024-25, credited annually. EPF historically pays 0.5-1% more than PPF but the rate is announced retrospectively and is subject to government approval.
Both contribute 12% of basic + DA. Of the employer's 12%, 8.33% goes to EPS (pension scheme, capped at ₹15,000 basic) and 3.67% to EPF. The full 12% of employee contribution goes to EPF.
EPF is EEE if you complete 5 years of continuous service. Withdrawal before 5 years is taxable as salary, plus the employer's contribution and interest gets taxed. Always transfer EPF on job-change instead of withdrawing.
Yes — Voluntary Provident Fund (VPF) lets you contribute up to 100% of basic + DA, earning the same EPF interest rate. Post-2021 rule: VPF interest on annual contribution above ₹2.5 lakh is taxable. VPF is one of the safest 8%+ debt instruments available.