EPF Calculator (Simplified)

What is EPF (Employees' Provident Fund)?

The Employees' Provident Fund (EPF) is a mandatory retirement savings scheme managed by the Employees' Provident Fund Organisation (EPFO) in India. It applies to establishments employing 20 or more persons. Both the employee and the employer contribute a portion of the employee's salary (Basic + Dearness Allowance) towards the fund.

Key Features of EPF

• Contribution: Typically, the employee contributes 12% of their Basic + DA, and the employer matches this contribution.
• EPS Diversion: A portion of the employer's contribution (currently 8.33% on a maximum wage ceiling of ₹15,000, i.e., ₹1250/month) is diverted to the Employees' Pension Scheme (EPS), which provides a pension after retirement. The remaining employer contribution goes to the EPF account. (Note: This calculator simplifies and assumes the full employer % goes to EPF for corpus estimation).
• Interest Rate: Interest is compounded annually. The rate is declared by the EPFO each financial year based on its earnings.
• Withdrawal: Full withdrawal is generally allowed upon retirement (age 58), or under specific conditions like unemployment for more than two months. Partial withdrawals are allowed for specific purposes like housing, marriage, education, medical emergencies, subject to rules.
• Tax Benefits: Employee contributions up to ₹1.5 Lakh qualify for deduction under Section 80C. The interest earned and the final withdrawal amount (after 5 years of continuous service) are generally tax-free (EEE status).
• UAN: A Universal Account Number (UAN) is allotted to each member, allowing them to manage their EPF account easily across different employers.

Calculator Simplification

This calculator provides a **simplified estimate** of the potential EPF corpus.

**It simplifies/ignores:** The diversion of the employer's contribution to the Employees' Pension Scheme (EPS), the exact monthly calculation and compounding of interest (uses annual approximation), potential contribution caps based on wage ceilings for certain calculations, and VPF (Voluntary Provident Fund) contributions.

Disclaimer: This calculator provides a basic projection for informational purposes only. Actual EPF corpus depends on exact contributions, official interest rates declared by EPFO, EPS diversion rules, and withdrawal history. Consult the official EPFO website and a financial advisor for accurate details and comprehensive retirement planning.