How Does the EPF Calculator Work?
The Employee Provident Fund (EPF) is one of the most effective retirement saving schemes available to salaried employees in India. It is managed by the Employees' Provident Fund Organisation (EPFO).
The EPF Math Explained
- Employee Contribution: By default, 12% of your Basic Salary + Dearness Allowance (DA) is deducted every month towards EPF.
- Employer Contribution: Your employer matches this 12%. However, 8.33% of it (subject to a salary cap) goes into the Employee Pension Scheme (EPS), and the remaining 3.67% goes into your EPF account.
- Compound Interest: The EPFO declares an annual interest rate (currently around 8.25%). This interest is calculated on the opening balance of each month and compounded yearly.
Using our EPF Calculator, you can project how your provident fund will grow over your career. By inputting an estimated annual salary increment, the calculator dynamically computes the compounding effect to estimate your final retirement corpus!