EPF Calculator: Employee Provident Fund, in short, EPF is a retirement benefits scheme for all the salaried employees in the Private sector. Any organization or industry that has more than 20 employees will have to register under EPFO to make contributions. There are various schemes under EPF such as EPF Scheme, Pension Scheme, and Insurance Scheme.
Of all the schemes, EPF Scheme is the most popular scheme. Both employee and employer will have to make a 12% of the fixed contribution of his/her basic salary along with a Dearness allowance if applicable. The employee 12% contribution directly goes to the EPF account. Whereas the employer’s 12% contribution is divided into two schemes – where EPF Account Scheme carries 3.67% and Pension Scheme carries 8.33%. The officials of EPFO will also provide the interest rates for the EPF funds and these EPF interest rates will be revised every financial year. For the Financial Year (FY 2020-21) the EPF Interest Rate is fixed at 8.5%. So now the question is how to calculate the estimated savings after retirement. For this, any EPF member will have to use the EPF Calculator. To help you with that here is a detailed article on how EPF is calculated?. Read on to find out more.
Online EPF or PF Calculator
There is no official EPF Calculator available on the official website of EPFO. And any EPF member who wants to estimate their savings on retirement will have to calculate their savings manually. In order to calculate the PF amount after resignation one will have to keep the following things in hand.
EPF Pension Calculator: Factors Considered To Calculate EPF
The list of factors required to calculate the EPF amount is given below:
- Monthly Basic Salary Including Dearness Allowance
- Percentage of Contribution To EPF
- Employers Contribution
- Retirement Age Including VRS (If you have plans)
- Current EPF Balance
- Current Finical Year EPF Intrest Rate
EPF Retirement Calculator: How EPF is Calculated?
The formula to calculate the EPF has been given below:
|EPF Calculation Method Formula = Existing EPF Balance + Yearly Employee Contribution towards the EPF Account + Yearly Employer Contribution towards EPF Account + Current Financial Intrest Rate|
EPF Calculation Method Example
Let us understand the Manual EPF Calculation Method through an example:
- Employees Basic Pay + Dearness Allowance = Rs. 14,000
- Yearly Employee 12% Basic Contribution + Dearness Allowance = 12% of 14,000 = Rs. 20160
- Employer Contribution towards EPF account = 3.67% of 14,000 = Rs. 6168
- Employer Contribution towards EPS account = 8.33% of 14,000 = Rs. 13992
- Current Finanial Year Intrest Rate (FY 2020-21) = 8.5%
- Employees Existing EPF Balance (If available) = Rs. 40,000
Now the Estimated Savings of EPF Account is:
EPF Account Balance = Rs. 40,000 (Existing Balance) + Rs. 20,160 (Employees Contribution) + Rs. 6168 (Employer Contribution for EPF Account) + 8.5% (Current Financial Intrest Rate)
= Rs. 66,328 + 8.5% of EPF Account balance
= Rs. 66,328 + 5637.88 (Current Financial Intrest Rate)
So, the EPF Account Balance = Rs. 71965.88/
Note: If the existing balance is not available, then mark it as 0.
EPF Calculator Excel
We have created an EPF Pension Calculator in Excel format. All you have to do is download the EPF Calculator provided on this page in Excel format and perform your operations to calculate your EPF balance after retirement.
Other EPF Calculators Online
There are many third-party websites which are providing online EPF Calculators to calculate your estimated EPF amount for your retirement. Any individual who wants to make use of those calculators can simply get the same from Google Search or other Search Engines.
EPF Calculator – Things To Know About EPF Contributions
- As discussed above EPF consists of 3 schemes – Provident Fund Scheme, Pension Scheme, and Insurance Scheme.
- Every employee who has enrolled under EPFO will have to contribute 12% of his/her basic salary and Dearness allowance if available.
- Along with employee, even the employer will have to make a contribution of 12% of the basic salary of the employee.
- Employee’s contribution will directly go into EPF account.
- The employer contribution is divided into two unequal halves. Employer’s contribution of 8.33% will be added into Pension Scheme and other 3.67% contribution into the EPF account.
- The officials of EPF will also provide the interest to the funds whichever you have in your EPF account. For the current Financial Year, the interest rate is set as 8.5%.
- The officials of EPFO will not pay any interest to the pension scheme amount contributed by the employer. However, from the age of 58, the officials of EPFO will pay the pension to the employees with the help of funds received in the Pension Scheme.
FAQs On EPF Calculator
The frequently asked questions on EPF Calculator are given below:
Q. What will be my PF amount at retirement?
A. The PF amount depends on the employee’s basic salary, employee contribution, employer contribution, Financial Year Intrest Rate. The detailed EPF Calculation method to calculate the PF amount at retirement has been explained in the above section of the article.
Q. Can we contribute more than 12% to EPF?
A. Yes, any individual will be able to contribute more than 12% to the EPF account. For this, the employee will have to contribute under Voluntary Provident Fund (VPF).
Q. Is it compulsory to deduct PF from salary?
A. Yes, any employee whose basic salary and dearness allowance is up to Rs. 15,00 will have to contribute to the EPF. However, employees can also opt-out of the EPF by filling Form 11 at the EPFO website.
Now that you are provided with all the necessary information on the EPF calculation method and we hope this article is helpful to you. If you have any queries about EPF Calculator, ping us through the comment box below and we will get back to you as soon as possible.