If you are in a job and are a member of the Employees Provident Fund Organization (EPFO) then your PF (Provident Fund) account can be up to Rs. 1 crore, more than retirement.
If you are 30 years old and your basic salary is Rs. 20,000/- then when you retire, your PF account will have about Rs. 1.5 crore.
Calculation of PF
Here, we are telling you how to get 1.5 million rupees in your PF account.
Consume that an EPFO member is 30 years old and his basic salary is Rs 20,000. If the annual average increase in his salaries is estimated to be 8% and his retirement age is 58 years. Under the existing EPFO rule, 12-12% of the basic salary of the employee (Basic Salary + Dearness Allowance, if applicable) goes to the PF account as the company’s contribution and employee too. At present, EPFO is paying 8.55% interest on PF deposits. Based on retirement, the EPFO member’s PF account will have about Rs 1.5 crore.
Employee’s age: 30 years
Basic salary: Rs. 20,000/-
Monthly PF Contribution of Employee: 12%
Monthly PF Contribution of the Company: 12%
The annual increase in salaries annually: 8%
Age of retirement: 58 years
Current Balance in PF: 2 lakhs