📐 Formula Used
Monthly Contribution = 12% of Basic (Employee) + 3.67% of Basic (Employer to EPF) Annual Interest = EPF Balance × 8.25% / 12 (compounded monthly)
Frequently Asked Questions
What is EPF?
EPF (Employees' Provident Fund) is a retirement savings scheme under EPFO. Both employee and employer contribute 12% of the basic salary monthly.
What is the current EPF interest rate?
The EPF interest rate for 2023-24 is 8.25% per annum, declared by the EPFO annually. Interest is calculated monthly but credited annually.
Can I withdraw EPF before retirement?
Partial withdrawal is allowed for specific purposes (home purchase, illness, marriage). Full withdrawal is allowed on retirement (58 years) or after 2 months of unemployment.
What is VPF?
VPF (Voluntary Provident Fund) allows employees to contribute more than the mandatory 12% to their EPF account at the same interest rate.