EPF: You are in a job and cuts PF from your salary every month. Do you know how much fund will be collected in your EPF account 10, 15 or 20 years. Employees Provident Fund i.e. EPF is a retirement saving plan, which adds small funds to retirement by adding small amount during your job. EPF is handled by the government’s organization EPFO. It is a government agency.
How much percent goes from salary to EPF
In the EPF scheme, 12% of your salary is cut every month. The same share is also added by your company. However, 8.33% of the company’s 12% of the company goes into the Pension Scheme (EPS) and the remaining 3.67% stakes in the EPF. Interest is received every year on this deposit amount. For the current financial year 2024-25, the government has fixed 8.25% interest on this.
How much will EPF be deposited annually
Now suppose that your basic salary and DA i.e. dearness allowance is Rs 25,000 monthly. In such a situation, every month, Rs 3,000 will go from your side and Rs 917.50 from the company in the EPF account. That is, a total of Rs 3,917.50 will be deposited every month and Rs 47,010 annually.
How much will be the money in EPF after 10, 15 or 20 years
If this contribution is made continuously and no money is withdrawn in the middle, then this amount can increase a lot with interest. For example, if you contribute for 10 years, your PF balance will be around Rs 7.45 lakh. Similarly, if you continue to contribute without withdrawal for 15 years, then this amount can reach about 14.08 lakh rupees. And after 20 years this amount can be up to Rs 23.09 lakh.
It is important to note that these figures are based on an estimate. For example, there is no change in salary, the interest rate remains stable and no money should be withdrawn from the EPF account. If the salary increases or the interest rate changes, the amount will also change accordingly.
Tax is free interest
The special feature of EPF is that the interest received in it is tax free and it is a fixed investment option. Also, you can remove some part of it when needed, such as for work like buying a house, child’s education or marriage.