EPF interest rate is an opportunity that employees should not snub in any way. In fact, just like they look at their salary slip every month to check the amount of money they have received from their employer, they should also make it a habit of checking their EPF balance. After changing jobs, employees must make sure their new EPF contributor, is merged properly in their EPF UAN. Notably, EPF money can come in handy in emergencies like losing a job. However, the primary function of your Employees’ Provident Fund is to create a massive retirement fund. That way you can get a steady income even after retiring. And here we show how a Rs 25000 salary can turn into a stunning sum that is just under Rs 2 crore.
Let us assume that the employee opens his EPF account at the age of 25 and keeps working steadily till retirement. The EPF contribution of his as well as his employer’s keeps on flowing month-after-month and year-after-year into his EPF account without a break. We will also take another assumption that he gets salary increments of 5% every year. Do note that this is a conservative estimate, employees nowadays expect and get higher jumps in pay. Also, we then factor in an EPF interest rate of 8.1%. Why? Because the Employees’ Provident Fund Organisation (EPFO) changes the EPF interest rate on a regular basis. So, even though current EPF interest rate is 8.25%, there is no guarantee it will stay that way going forward. Therefore, we have taken a conservative estimate of 8.1% as the EPF interest rate.
And what will the employee earn from this EPF interest rate? Let the EPF calculator show you. The massive amount that the employee will get will be Rs 1.95 crore! And if we calculate as per 8.25% EPF interest rate, the amount will easily cross over Rs 2 crore.
Note: The amounts mentioned here are simply estimates and the actual sums will be available in the employee’s EPF passbook.
EPF interest rate windfall can be accessed easily by employees. In fact, this high EPF interest rate can transform your Rs 25000 salary into just under Rs 2 crore. Know what EPF FD calculator shows. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
