What is EPF?
The Employee Provident Fund (EPF) is a mandatory retirement savings scheme for salaried employees in India, administered by EPFO. Both employee and employer contribute 12% of basic + DA monthly. The accumulated corpus earns compound interest (currently 8.25% p.a.) and is paid out at retirement, resignation (after 2 months unemployment) or as a partial advance.
EPF contribution split
| Contribution | Rate | Goes to |
|---|---|---|
| Employee | 12% | EPF (full) |
| Employer | 8.33% | EPS (pension), capped at ₹1,250/month |
| Employer | 3.67% | EPF |
| Employer | 0.50% | EDLI (insurance) |
How the calculator projects your corpus
Each year we (a) compute monthly contributions on the current basic, (b) credit interest on the opening balance + half of current-year contributions, and (c) hike the basic by your input % for the next year. The corpus at retirement is the sum of all employee + employer contributions plus compounded interest.
Example
Age 25, retirement 58, basic ₹40,000, hike 8%, interest 8.25% → projected corpus ≈ ₹4.8 crore (employee + employer + interest).