Planning for retirement may seem like a distant goal, but starting early can provide substantial financial security. One of the most reliable savings schemes available to salaried employees in India is the Employees’ Provident Fund (EPF). Managed by the Employees’ Provident Fund Organisation (EPFO), this long-term investment tool ensures that employees have a financial cushion post-retirement.

If you're wondering how much wealth you can accumulate in your PF account after 10, 15, or 20 years of service, here’s a detailed breakdown—with examples—to help you understand.

What is the Employees’ Provident Fund (EPF)?

The EPF is a government-backed retirement savings scheme aimed at salaried employees. Under this scheme, both the employee and the employer contribute a specific percentage of the employee’s basic salary and dearness allowance (DA) into the PF account.

This scheme is divided into two key components:

Employees’ Provident Fund (EPF):
A savings account where both the employee’s and employer’s contributions accumulate with interest, which can be withdrawn after retirement or under certain conditions.

Employees’ Pension Scheme (EPS):
A portion of the employer's contribution is diverted here to provide monthly pension benefits after retirement or to the nominee in case of the employee’s death.

Contribution Breakdown

• Employee Contribution: 12% of basic salary + DA




• Employer Contribution: 12% of basic salary + DA

  
  
  
  

  • Of this, 8.33% goes to EPS

  
  

  • Remaining 3.67% goes to EPF

  
  

Each year, the government announces the interest rate applicable to EPF accounts. For the financial year 2024-25, the interest rate is 8.25% per annum. This interest is compounded annually and is tax-free, making EPF an attractive investment option.

How is PF Calculated?

Let’s consider an employee earning a monthly basic salary + DA of ₹25,000. Here's how the PF contribution and returns would work:

• Employee Contribution (12%): ₹3,000/month




• Employer EPF Contribution (3.67%): ₹917.50/month




• Total Monthly EPF Contribution: ₹3,917.50




• Annual Contribution: ₹47,010

Using this structure, here's an estimate of the maturity amount over different time periods, assuming a consistent salary and interest rate:

Estimated EPF Corpus Over the Years



Service Duration Approximate EPF Maturity Value

10 Years	₹7.45 Lakh
15 Years	₹14.08 Lakh
20 Years	₹23.09 Lakh

Note: These estimates are based on fixed monthly contributions and a steady interest rate of 8.25%.

Why Start Early?

The power of compound interest makes a significant impact on long-term savings like PF. By starting your contributions early in your career, you allow your money to grow at an accelerating pace over time. Additionally, EPF contributions are tax-deductible under Section 80C of the Income Tax Act, making them a smart choice for both savings and tax planning.

Final Thoughts

The EPF is more than just a retirement savings plan—it's a long-term financial safety net that helps you build a secure future. Whether you plan to work for 10, 15, or 20 years, your consistent contributions, coupled with government-guaranteed interest, will reward you with a substantial corpus when you need it most.

If you're a salaried employee, make sure to regularly check your PF account and understand how your monthly contributions are shaping your retirement fund. And if you're new to the workforce, the best time to start planning for retirement is now.