Employee Provident Fund Calculator : Employees Provident Fund (EPF) is a retirement saving scheme for the employed. The work of managing this account is being done by the Employees Provident Fund Organization (EPFO). Most of the employees working in the organized sector are members of the Employees Provident Fund Organization. EPF has been prepared keeping in mind the retirement of the employees, so that financial security can be provided in the non-working years. In this account, 24 percent of the basic and dearness allowance (DA) of both the employee and the employer, i.e. the organization in which the employee works, is deposited. Every year the government decides the interest on the amount deposited in this EPF account. Currently the interest rate on this is 8.25 percent per annum.
People who saved 5000 rupees monthly made 5 crores, have you invested money in any such scheme
Avoid withdrawal if not necessary
Through disciplined investment in this scheme, you can create a large fund for retirement. As per EPFO rules, partial withdrawal can be made from EPF account if required. But if the EPF money is kept till retirement without withdrawing from time to time, then a good fund can be created.
Deposit rules
For EPF account, the employee has to contribute 12% of his salary which is made up of basic salary and dearness allowance. The company or employer also contributes the same amount. Out of the company’s contribution, 8.33% goes to EPS i.e. pension fund. Whereas the company’s contribution to EPF is only 3.67%.
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How interest is added (on Rs 20,000 basic + DA)
Basic Salary + Dearness Allowance (DA) = Rs 20,000
Employee’s contribution to EPF = 12% of Rs 20,000 = Rs 2400
Company’s contribution to EPF = 3.67% of Rs 20,000 = Rs 730
Company’s contribution to EPS = 8.33% of Rs 20,000 = Rs 1666
Monthly contribution to EPF account = 2400 + 730 = Rs 3130
This amount will be deposited in the EPF account every month and the interest rate fixed on it will be credited to the account. As per the annual interest rate of 8.25 percent, interest will be paid at the rate of 0.6875 percent every month but it will be credited on the last day of the financial year.
Monthly savings of 5000 rupees, got 13 crores in 28 years, did you also think of something like this for retirement
EPF Calculator : On basic salary of 20 thousand rupees
Age of the employee: 25 years
Retirement age: 60 years
Basic Salary + DA: Rs 20,000
Contribution from employee: 12%
Contribution from company: 3.67%
Annual increment estimate: 5%
Interest on PF: 8.25% p.a.
Total contribution: Rs 36,04,312
Fund on retirement: Rs 1,44,83,861 (around Rs 1.45 crore)
Total interest benefit: Rs 1,08,79,508
EPF Calculator : Basic salary of Rs 25 thousand
Age of the employee: 25 years
Retirement age: 60 years
Basic Salary + DA: Rs 25,000
Contribution from employee: 12%
Contribution from company: 3.67%
Annual increment estimate: 5%
Interest on PF: 8.25% p.a.
Total contribution: Rs 45,05,560
Fund on retirement: Rs 1,81,04,488 (around Rs 2.17 crore)
Total interest benefit: Rs 1,35,99,128
Your child will get Rs 1 crore as soon as he starts a job, how much and for how long should you invest in this government scheme
EPF Calculator : Basic salary of 30 thousand rupees
Age of the employee: 25 years
Retirement age: 60 years
Basic Salary + DA: Rs 30,000
Contribution from employee: 12%
Contribution from company: 3.67%
Annual increment estimate: 5%
Interest on PF: 8.25% p.a.
Total contribution: Rs 54,06,168
Fund on retirement: Rs 2,17,24,737 (around Rs 2.17 crore)
Total interest benefit: Rs 1,63,18,569