EPF Can Help Build ₹80 Lakh Corpus

New Delhi, April 27, 2026 (Daily Kiran): The Employees’ Provident Fund Organisation continues to remain a key savings tool for salaried individuals, with experts highlighting that disciplined contributions can help build a corpus of up to ₹80 lakh over time.

Under the Employees’ Provident Fund (EPF) scheme, both the employee and employer contribute regularly, and the accumulated amount earns annual interest. Currently, EPF offers an interest rate of 8.25 percent, benefiting over 7 crore subscribers across the country.

Typically, employees contribute 12 percent of their basic salary and dearness allowance (DA), up to a maximum salary cap of ₹15,000. Employers also contribute 12 percent, out of which 3.67 percent goes to the EPF account, while 8.33 percent is directed to the Employees’ Pension Scheme (EPS).

Experts suggest that increasing contributions through the Voluntary Provident Fund (VPF) can significantly boost long-term savings. According to Shreya Sharma, Founder and CEO of Rest The Case, VPF is not a separate account but an extension of EPF, allowing employees to contribute more than the mandatory 12 percent while earning the same interest rate. The maturity amount remains tax-free, and contributions qualify for deductions under Section 80C in the old tax regime.

Explaining the long-term impact, experts note that if an individual contributes ₹5,000 monthly to an EPF account at an interest rate of 8.25 percent and does not withdraw the funds for 30 years, the total corpus can reach around ₹80 lakh.

However, frequent withdrawals can significantly reduce the final amount. In a comparison, if another individual withdraws the entire EPF balance every 10 years and restarts contributions, the total corpus may be limited to around ₹28 lakh.

Experts attribute this difference to the power of compounding. Over long periods, interest is earned on a growing base. Repeated withdrawals reset this base, reducing the overall benefit of compounding.