How the EPF builds up
Both you and your employer contribute a percentage of basic salary plus dearness allowance every month. Your share goes entirely into the provident fund. Part of the employer's share is diverted to the Employees' Pension Scheme, so the amount reaching your PF balance from the employer is smaller than the headline percentage suggests — this calculator accounts for that.
Interest is declared annually by the EPFO and credited to the balance, where it compounds for the rest of your working life.
Points to note
- The interest rate is declared each year and has varied. Enter the rate you want to assume, and confirm the current declared rate before relying on the projection.
- Transfer your account rather than withdrawing it when you change jobs. Withdrawal resets the compounding and may attract tax if the period of service is short.
- Voluntary Provident Fund lets you contribute more than the statutory share at the same rate of interest.
- This projection assumes a steady annual salary increase, which real careers rarely follow.