Employee Provident Fund (EPF) Calculator
The Employee Provident Fund (EPF) scheme is one of the most powerful ways for employees to save for the long term. This calculator helps you estimate your EPF retirement corpus based on your salary, annual increments, and compound interest, while correctly accounting for the EPS split.
Retirement Corpus Projection
Total EPF Contribution
₹9,30,798.00
Total Interest Earned
₹35,83,594.66
EPF Corpus at Retirement
₹45,14,392.66
Employer's EPS contribution (8.33% of salary up to ₹15,000) is excluded from the EPF corpus and is paid separately as pension.
Note: The calculation above assumes EPF contributions are made on a capped salary of ₹15,000 per month, as is common practice. Some employers may contribute on the full basic salary, which would result in a higher maturity amount. This calculator uses the statutory minimum for a conservative estimate.
How Your EPF Corpus Grows for Retirement
Your Provident Fund grows through a powerful combination of monthly contributions and annual compounding. This calculator simulates that growth to give you a clear retirement projection, separating the EPF corpus from the EPS pension scheme.
Monthly Contributions
Both you and your employer contribute 12% of your salary. The employer's part is split between your EPF (3.67%) and the EPS pension scheme (8.33% on a capped salary).
Annual Salary Increments
As your salary grows each year, your monthly contributions also increase, accelerating the growth of your retirement corpus.
Power of Compounding
The government declares an interest rate each year, which is applied to your EPF balance. This interest-on-interest effect makes your savings grow exponentially over time.
Understanding EPF vs. EPS: The Contribution Split
Your employer's 12% contribution is split between the Employee Provident Fund (EPF) and the Employee Pension Scheme (EPS). It is crucial to understand this difference.
EPF (Provident Fund)
This is your primary retirement savings account. It consists of your full 12% contribution plus the employer's 3.67% contribution. This entire amount is invested and grows with compound interest, forming the lump-sum corpus you receive at retirement.
EPS (Pension Scheme)
This is funded by your employer's contribution of 8.33% on salary up to a maximum of ₹15,000 per month. This amount does NOT go into your EPF account and does not earn EPF interest. Instead, it funds a separate pension that you receive monthly after retirement.
Tax Treatment of EPF Contributions
Like the PPF, the EPF is a very tax-efficient investment. Here’s a breakdown of how it is taxed.
- The employee's contribution to EPF is eligible for tax deductions under Section 80C of the Income Tax Act (up to ₹1.5 lakh), but only if you opt for the Old Tax Regime.
- The employer's contribution to your EPF account is tax-free in your hands and is not considered part of your income.
- Interest earned on the EPF balance is tax-free, provided your annual contribution is below ₹2.5 lakh. Interest on contributions above this limit is taxable.
- The final withdrawal amount at retirement is fully tax-free, provided you have completed at least 5 years of continuous service.
Who Should Use This EPF Calculator?
This tool is designed for anyone who wants to plan for a financially secure retirement:
Whether you are just starting your career or are a few years away from retirement, this calculator provides the insights you need to understand your long-term savings potential and make informed financial decisions.