What is the Employees' Provident Fund (EPF)?
The EPF is a government-backed retirement saving scheme mandatory for salaried employees in India earning basic salaries up to ₹15,000. Both the employee and the employer contribute 12% of the basic salary + Dearness Allowance (DA) monthly. The fund compiles compounding interest annually at rates decided by the government.
Breakdown of Contributions:
- Employee Contribution: 12% goes directly to the EPF account.
- Employer Contribution: 3.67% goes to the EPF, while 8.33% goes to the Employees' Pension Scheme (EPS) to fund post-retirement monthly pension.
EPF Maturity Calculator
🐷 EPF Maturity Calculator
Benefits of EPF for Indian Salaried Professionals:
- Stable Returns: EPF interest rates are historically much higher than standard bank FDs.
- Tax exemption: EEE (Exempt, Exempt, Exempt) category, meaning contributions, compounding growth, and final withdrawals are tax-free (provided total employee share is under ₹2.5 Lakhs annually).
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Disclaimer: The calculations provided by these calculators are estimates based on standard rules and formulas. For official financial, tax, or legal transactions, please consult with registered professionals or official banking resources. — Global Info Wiki Editorial Team
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