Monthly PF on ₹40,000 basic salary
| Part | Per month | Per year |
|---|---|---|
| Your contribution (12%) | ₹4,800 | ₹57,600 |
| Employer to EPF (8.88%) | ₹3,550 | ₹42,606 |
| Employer to pension, EPS | ₹1,250 | ₹14,994 |
| Total into your EPF account | ₹8,350 | ₹1,00,206 |
What it grows to at 8.25%
If the basic salary stayed at ₹40,000, your EPF would reach about ₹15.35 lakh in 10 years, ₹49.25 lakh in 20 years and ₹1.24 crore in 30 years. Pay rises make it much larger; set a yearly increase in the calculator above.
The employer’s pension share is worked out on a wage ceiling of ₹15,000, so it stays at ₹1,250 a month for any basic salary above that.
Questions people ask
How much PF is deducted from a ₹40,000 basic salary?
12% of basic + DA, which is ₹4,800 a month, unless your employer limits PF to the ₹15,000 wage ceiling (then ₹1,800).
How much does the employer add on ₹40,000 basic?
Also 12% (₹4,800), of which ₹1,250 goes to the pension scheme and ₹3,550 to your EPF account.