EPF Calculator: Are you a former government employee? Retired? Then there is important news for you. Today we are discussing the Employees Provident Fund (EPF), which is a retirement savings scheme in which about 28 crore accounts are being managed. In this article, you will learn more about the EPF scheme and how much retirement corpus one can generate by contributing Rs 5,000, Rs 10,000, and Rs 15,000 a month.
What is EPF?
The scheme is managed by the Employees Provident Fund Organization (EPFO). The purpose of this scheme is to provide financial security to employees after retirement. Through regular investment in EPF, employees can build a good corpus for their retirement. In this scheme, a part of the employee’s salary is deposited every month.
The special thing is that as much as the contribution is made by the employee, the same is done by the company. The amount of contribution is determined according to the salary. Every year, the government decides the interest rate given on the amount deposited in the EPF account. Currently, EPF is getting interest at the rate of 8.25% per annum.
Who can contribute?
If an employee earning at least Rs 15,000 in monthly basic salary can contribute to EPF. As per government rule, the minimum monthly contribution from the employee and the employer’s side is Rs 1,800, while the maximum is 12 percent of the basic salary and dearness allowance. Yes, you’ve heard it right.
Age Limit
Now you must also be wondering how much old people can contribute. As per rule, an employee can contribute up to the age of 60. Withdrawal is allowed only under specific conditions, such as 10 years of service and unemployment. However, the retirement age when one can withdraw the entire corpus is 58 years.
EPF investment
Now let’s talk about how much you can start investing in EPF. Also learn how much money you should have to invest. Like example of Rs 5,000, Rs 10,000, and Rs 15,000 investment for 35 years. If you invest Rs 5,000 a month, the invested amount in 35 years will be Rs 21 lakh. If you invest Rs 10,000 a month, the invested amount in 35 years will be Rs 42 lakh. The estimated EPF retirement corpus on this investment will be Rs 2,36,67,926.27.
If you plan to invest Rs 15,000 a month, the invested amount in 35 years will be Rs 63 lakh. The estimated EPF retirement corpus on this investment will be Rs 3,55,01,889.4.