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EPF Calculation: Big News! 35 years old, 15 thousand basic salary; How much PF money will be available on retirement, know here

EPF: This is a retirement benefit scheme for private sector employees. In this, the contribution of both the employee and the company is there.

EPF Calculation: Employed Provident Fund (EPF) is a retirement benefit scheme for the salaried employees of the private sector. This fund is managed by the Employees’ Provident Fund Organization (EPFO). In the EPF account, there is a contribution from both the employee and the employer. The interest rates of EPF are fixed every year by the government. At present, 8.5% annual interest is being received. EPF is such an account, in which gradually large corpus is formed till retirement. In this, the benefit of compounding of interest is available. If the contribution is maintained in this account till the age of retirement and the salary increases every year, then a good corpus can be made.

How much retirement fund on 15 thousand basic salary

Suppose your basic salary and dearness allowance is Rs 15,000. If you are 35 years old, then by the age of 58, you can have a retirement fund of about Rs 56.41 lakh ready for retirement. The maximum contribution can be made in the EPF scheme only up to 58 years.

Understand EPF Calculation

  • Basic Salary + DA = Rs 15,000
  • Present age = 35 years
  • Retirement age = 58 years
  • Employee monthly contribution = 12%
  • Employer monthly contribution = 3.67%
  • Interest rate on EPF = 8.5% per annum
  • Annual salary growth = 10%
  • Maturity Fund at the age of 58 years = 56.42 lakh (Employee contribution is Rs 19.11 lakh and Employer contribution is Rs 5.85 lakh. Total contribution is Rs 24.96 lakh.)

(Note: Annual interest rate has been taken at 8.5 per cent and annual salary growth at 10 per cent for the full year of contribution.)

Employer’s deposit in EPF is 3.67%

12% of the basic salary and Dearness Allowance (Dearness Allowance) of the employee is deposited in the EPF account. But, the employer’s 12 percent amount is deposited in two parts. Out of 12 per cent contribution of the employer, 8.33 per cent is deposited in the Employee Pension Account and the remaining 3.67 per cent goes into the EPF account.

Understand monthly EPF contribution from 15,000 salary

  • Employee Basic Salary + Dearness Allowance = Rs 15,000
  • Employee contribution in EPF = 12% of Rs 15,000 = Rs 1,800
  • Employer’s contribution in EPF = 3.67 per cent of Rs 15,000 = Rs 550
  • Employer’s contribution to Pension Fund (EPS) = 8.33 per cent of Rs 15,000 = Rs 1249

In this way, the total monthly contribution in the EPF account of an employee with a basic salary of Rs 15,000 in the first year will be Rs 2350 (Rs 1800 + 550). Thereafter, the basic and dearness allowance will increase in the same proportion with a 10% increase in the salary on an annual basis. With which the EPF contribution will increase. It is mandatory for the employees whose basic salary is less than Rs 15,000 to join this scheme.

(Note: This EPF calculation is based on certain conditions. Figures are subject to change on difference in salary, contribution period, interest rate and salary growth.)

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @
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