EPF Calculator

Worked example

Take an employee aged 30 with a monthly basic salary of Rs 50,000, expecting 8 percent annual increments, with EPF earning the declared 8.25 percent. Of the 12 percent employer share, 8.33 percent is diverted to the EPS pension scheme, so only 3.67 percent reaches the EPF balance. The EPF therefore grows on 12 percent employee plus 3.67 percent employer, which is 15.67 percent of basic. In year one that is about Rs 7,835 a month flowing into the fund. The calculator runs the balance month by month for the 28 years to age 58, crediting interest monthly and stepping the basic up each year. Total contributions over the career come to about Rs 89,09,005, and with compounding the projected EPF corpus at age 58 is roughly Rs 2,33,25,617. The gap between the two figures is accumulated interest, which is the larger part of the corpus over such a long horizon.

How it is calculated

Both employee and employer contribute 12 percent of basic salary to the provident fund scheme. The employee's full 12 percent goes to EPF, but the employer's 12 percent is split: 8.33 percent funds the Employees Pension Scheme and only 3.67 percent is added to the EPF balance. This calculator therefore grows the EPF at 15.67 percent of basic. It compounds the balance monthly at one twelfth of the annual EPF rate and raises the basic by your assumed increment at the start of each year, summing everything to age 58. Withdrawal after five years of continuous service is fully tax-exempt, while earlier withdrawal makes the employer share and interest taxable. Note that the declared EPF rate is reviewed every year, so the actual corpus will differ as rates move.