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EPF Calculator

Age (Years)

Enter value between 18 to 60
18 60

Monthly Salary (Basic+DA)

Enter value between 1000 to 500000
5000 1 Cr

Income Growth Rate (P.A)

Enter value between 0 and 100
%
0 100

Your Monthly Contribution

Enter value between 12 and 100
%
12 20

Total Amount at the age of retirement

16,00,000

Your Investment

16,00,000

Rate of Interest (FY-2023-24)

8.25

%

Retirement Age (Years)

60

Employer's Monthly Contribution Value

3.7

%

Employee Provident Fund (EPF) Calculator Online

What is EPF?

What are the Benefits of EPF?

EPF is a crucial component of the financial portfolio, providing them with a robust foundation for retirement planning. Here are some of the benefits of EPF:

Financial Security

Financial Security

EPF offers a reliable source of income post-retirement, ensuring financial stability. With regular contributions, EPF builds a substantial corpus over time, providing a steady income stream after retirement.

Tax Benefits

Tax Benefits

Contributions made towards EPF are eligible for tax deductions under Section 80C of the Income Tax Act. This tax benefit reduces the taxable income for the employee, resulting in lower tax liability and increasing the take-home pay.

Compound Interest

Compound Interest

EPF deposits earn compound interest, leading to substantial retirement corpus growth. The compounding effect allows the EPF savings to grow exponentially, providing higher returns.

Employer Contributions

Employer Contributions

In addition to the employee's contribution, employers contribute to the EPF account. This significantly enhances retirement savings, adding to the overall corpus and accelerating wealth accumulation.

Loan Facility

Loan Facility

EPF allows members to avail of partial withdrawals for specific purposes. This loan facility serves as a financial safety net, providing liquidity during times of need without compromising long-term savings goals.

Savings Discipline

Savings Discipline

EPF instils a culture of regular savings among employees, promoting long-term wealth accumulation habits. Employees develop a habit of saving systematically by deducting a portion of their salary towards EPF contributions.

Nomination Facility

Nomination Facility

EPF provides a nomination facility, enabling members to nominate family members or dependents to receive the accumulated corpus in case of the member's demise. This ensures financial security for loved ones.

Retirement Planning

Retirement Planning

EPF forms an integral part of retirement planning, offering a stable source of income. By contributing to EPF throughout their working years, employees build a substantial corpus that supports them financially in retirement.

What is an EPF Calculator?

epf calculator

What is an EPF Calculator?

An EPF (Employee Provident Fund) calculator is a tool designed to help individuals estimate the future value of their EPF contributions and plan their retirement savings effectively. This calculator considers various factors, such as the employee's age, monthly salary, EPF contribution rate, expected interest rate, etc.

By inputting different details into the EPF calculator, individuals can get an approximate idea of how much they can accumulate in their EPF account over a specific period. The calculator also provides insights into the potential growth of the EPF corpus, helping individuals make informed decisions regarding their retirement planning.

How to Use Digit's EPF Calculator & How It Works?

Here is a step-by-step guide on how to use Digit’s EPF calculator:

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Step 1

Start by entering your personal details, such as your current age and your retirement age, on the same page or Digit App. Next, provide your salary information, including your monthly basic salary, income growth rate, or other salary components, if applicable.

Step 2

Fill in the details regarding EPF contributions, i.e., the percentage of your monthly contributions.

Step 3

Once all the required fields are filled, click the "Calculate" button. The calculator will process your inputs and provide the estimated EPF savings.

How is EPF Calculated?

EPF (Employee Provident Fund) calculation is a straightforward process governed by specific rules and regulations. Here's how EPF is calculated:

1. Basic Salary Calculation

EPF contributions are typically a percentage of an employee's basic salary. Basic salary includes basic wages and dearness allowance (if applicable).

2. Employee Contribution

Employees contribute 12% of their basic salary towards EPF. This contribution is deducted directly from the employee's salary and deposited into their EPF account.

3. Employer Contribution

Employers also contribute an equal amount to the employee's EPF account. This contribution is in addition to the employee's contribution and constitutes 12% of the employee's basic salary.

4. Interest Accrual

EPF contributions earn interest, which is compounded annually. The government determines the interest rate, typically announced by the Ministry of Labour and Employment. The rate is subject to periodic revisions.

5. Monthly Calculation

EPF contributions are calculated monthly. The employer's and employee's contributions are deducted from the employee's salary and deposited into the EPF account.

6. Accumulated Balance

Over time, these monthly contributions, along with accumulated interest, build up the EPF corpus. The EPF balance grows steadily, providing employees with a reliable source of retirement savings.

What is the Formula for EPF Calculation?

One must refer to the following section to understand the basics of EPF calculation and the contributions made by the employee and the employer. 

Employee’s contribution towards EPF = 12% of (Basic pay + DA)

Employer’s contribution towards EPF = 12% of (Basic pay + DA)

Please note that the 12% of an employer's contribution is divided into two parts: 8.33% towards the employee’s pension scheme (EPS) and 3.67% towards the Provident fund.

 

To simplify the above formula, let’s understand the meaning of each term from the given table:

Terms Meaning
Basic Pay The standard rate of pay before additional payments
DA Dearness Allowance is an amount added to the basic salary to calculate the take-home amount.

Next, we focus on how interest is calculated on both employee and employer contributions at the end of a year.

The interest rate for FY 2023-2024 is 8.25% p.a. Therefore, the applicable interest rate per month is 8.25%/12= 0.6875%. This calculation is performed on the opening balance of each month. As the first month's opening balance is zero, interest earned also amounts to zero. 

Interest for the second month is computed on the closing balance of the first month, which is also the opening balance of the first month. This calculation will be done similarly in later months. Individuals can use an EPF interest calculator to determine the monthly and yearly interest earned.

However, the total interest of the first year is added to the sum of both employers’ and employees’ contributions, which is the opening balance for the second year.

Individuals can calculate the accumulated amount using an Excel sheet-based EPF calculator. This tool helps individuals better understand the EPF corpus and enhance their investment decisions. Those willing to know how the EPF calculator works must understand the example and calculation process mentioned below.

Benefits of Using an EPF Calculator

advantages of using epf calculator

Benefits of Using an EPF Calculator

The benefits of the EPF calculator are numerous. These are discussed below-

  • EPF calculator helps individuals know quickly about the accumulated fund at the end of their service life.
  • As individuals get an idea about the EPF corpus, they can increase the percentage to earn the desired amount at retirement.
  • With awareness of the EPF corpus, subscribers can efficiently plan other investments.
  • Using this calculator, individuals can plan their retirement judiciously. If they wish to retire early, they can increase their contribution.
  • Armed with knowledge of the PF calculator's multifaceted advantages, uses, and calculation process, individuals can efficiently plan their retirement and ensure a financially secure life.

How EPF Calculator Can Help You?

An EPF (Employee Provident Fund) calculator can be immensely beneficial in several ways:

Retirement Planning

The calculator can estimate the future value of the EPF corpus by inputting different details. This helps individuals gauge whether their current contributions align with their retirement goals and make adjustments if necessary.

Financial Awareness

The calculator provides insights into the growth trajectory of the EPF balance over time. It helps individuals understand the impact of regular contributions, compounding interest, and other factors on their retirement savings.

Goal Setting

The EPF calculator helps individuals set specific retirement savings goals based on their financial situation and future aspirations. They can then track their progress toward these goals and make informed decisions.

Scenario Analysis

The calculator allows users to simulate different scenarios by adjusting contribution rates, expected returns, and retirement age. This helps individuals assess the impact of various factors on their EPF savings.

Decision Making

Armed with the insights provided by the EPF calculator, individuals can make well-informed decisions, identify areas for improvement, and take proactive steps to enhance their financial security in retirement.

What You Must Know About EPF Contributions?

things you should know about epf contributions

What You Must Know About EPF Contributions?

Understanding EPF (Employee Provident Fund) contributions is essential for every working individual. Here's what you must know about EPF contributions:

  • EPF contributions are a mandatory deduction from an employee's salary. Both the employee and the employer contribute a fixed percentage to EPF.
  • Employees contribute 12% of their basic salary towards EPF. This contribution is deducted directly from the employee's salary and deposited into their EPF account.
  • Employers also contribute an equal amount to the employee's EPF account, constituting 12% of the employee's basic salary.
  • EPF contributions earn interest, which is compounded annually. The government determines the interest rate, which is subject to periodic revisions.
  • EPF contributions are eligible for tax deductions. Both employee and employer contributions to EPF qualify for tax benefits up to a specified limit.
  • While there is no upper limit on EPF contributions, the mandatory contribution rate is capped at 12% of the employee's basic salary.
  • EPF funds can be withdrawn under certain conditions, such as retirement or resignation, or for specific purposes, like education, medical emergencies, etc.

What are the EPF Deduction Rules?

rules for deducting epf

What are the EPF Deduction Rules?

EPF (Employee Provident Fund) deduction rules govern how EPF contributions are deducted from an employee's salary. Here are the key EPF deduction rules:

  • Employees' Provident Fund (EPF) deductions are mandatory for employees earning a monthly salary of up to ₹15,000.
  • The current EPF contribution rate is 12% of the basic salary of both the employer and the employee.
  • EPF deductions are contributed towards the employee's retirement savings and are managed by the Employees' Provident Fund Organisation (EPFO).
  • EPF deductions apply to employees in both the public and private sectors, with few exceptions.
  • As per the Income Tax Act, EPF deductions are tax-exempt up to a certain limit, subject to prevailing government regulations.
  • EPF deductions are deducted directly from the employee's salary and deposited into their EPF account by the employer.
  • EPF deductions are portable and can be transferred from one employer to another if the employee changes jobs.
  • EPF deductions can be withdrawn under certain circumstances or for specific purposes, as outlined by the EPF guidelines.
  • EPF deductions are crucial in providing financial security and stability to employees during their retirement years.

What are the Previous Years' EPF Interest Rates?

The EPF interest rates are declared annually by the Employees' Provident Fund Organization (EPFO) and are subject to periodic revisions based on economic factors and market conditions. Here are the interest rates for the last three years: 

Year EPF Interest Rate
2022 – 2023 8.15%
2021 – 2022 8.10%
2020 – 2021 8.50%

What are the EPF Withdrawal Rules?

rules to withdraw epf

What are the EPF Withdrawal Rules?

The following are some fundamental guidelines regarding EPF withdrawal that one should remember:

  • Unlike a bank account, money in an EPF account cannot be withdrawn, while the account is used for employment only after retirement.
  • A partial withdrawal can be requested online for urgent needs, such as medical care, further education, home construction, or residential property purchases.
  • If a person is 54 years of age or older, EPFO permits them to withdraw 90% of their EPF corpus one year before retirement.
  • The EPF corpus may be withdrawn if lockdown or retrenchment causes unemployment before retirement.
  • After a month of unemployment, EPFO permits the withdrawal of 75% of the corpus, with the remaining 25% being transferred to a new EPF account upon employment.
  • Employees contributing to the EPF account for five consecutive years are exempt from paying taxes on the corpus withdrawal.
  • TDS will be withheld if an early withdrawal of the EPF corpus occurs, but not if the total amount withdrawn is less than ₹50,000.
  • If a PAN is filed, the TDS deduction for early withdrawal will be 10%; if not, it will be 30% + tax.
  • If the employer has approved it and the UAN and Aadhar are linked, checking the EPF status can be done online or directly through EPFO.
  • To access the EPF amount, the subscriber must declare themselves jobless.
  • According to the previous regulations, 100% EPF withdrawal is permitted following two months of unemployment.

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How to Check Your EPF Balance?

How to Transfer EPF Money Online?

To transfer EPF money online, you need to follow the steps mentioned below:

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Step 1

Log in to your EPF account using your UAN and password and click on the ‘One Member – One EPF Account (Transfer Request)’ option in the ‘Online Services’ section. Also verify personal information and present PF account details.

Step 2

Click on ‘Get Details’ to view PF account details of the previous employment and choose either your previous employer or present employer for attesting the claim form.

Step 3

Next provide your Member ID or UAN in the required fields and click on the ‘Get OTP’ button to receive the OTP to your registered mobile number. Enter the OTP to authenticate your identity.

Step 4

A filled-in PF transfer request form will be generated for self-attestation and submission to the selected employer in PDF format. The employer receives an online notification about the EPF transfer request and digitally approves it.

Step 5

Once approved, the PF is transferred to the new account with the current employer. Also a tracking ID is generated for online application tracking.

FAQs about EPF Calculation