How the calculation works
- Your share: 12% of basic + DA every month (plus any VPF).
- Employer's EPF share: 12% of basic + DA minus the EPS part, which is 8.33% of wages up to ₹15,000 (₹1,250 a month at most).
- Interest: monthly on the running balance at 8.25% ÷ 12, credited at the end of each year.
- Salary growth: basic rises once a year by the percentage you enter.
Example
Basic + DA of ₹25,000 a month at age 28, an existing balance of ₹1,00,000, a 5% raise every year and 8.25% interest: by 58 you contribute about ₹23.9 lakh, your employer's EPF share is about ₹19.4 lakh, and interest adds about ₹97.5 lakh, for a balance of roughly ₹1.42 crore.
Interest does most of the work over 30 years, which is why withdrawing PF when changing jobs costs far more than the amount you take out.
Good to know
- Transfer your PF when you switch jobs instead of withdrawing it; the UAN keeps one account across employers.
- The rate is decided every year, so treat long-term results as an estimate.