Urban Money

EPF Calculator

EPF Calculator Online

Every employee, at some point or the other, contemplates their retirement years and the related financial corpus they can save. Whatever everyone’s goal may be, future planning is an essential part of being a human. Employees who subscribe to an Employee Provident Fund can expect to receive a certain lump sum by the end of their service years. It will be imperative to adhere to financial planning in advance to ascertain various decisions such as whether or not to go for alternative investments, whether there will be enough financial support to meet personal ends, and much more. 

One such excellent tool is the EPF Calculator, which assists users in mapping their savings, which eventually leaves room for further personal economic strategising. EPF Calculator is an online computation app that is as easy to use. 

What is EPF? 

EPF, or Employees Provident Fund, is financial security for employees in their post-work years that is monitored by the Employees Provident Fund Organization (EPFO). Ths scheme allows individuals to receive a lumpsum amount at the time of their retirement.

The EPF opportunity is generally given to employees of companies in the organised sector. The amount receivable is usually a part of the employees' salary set aside and given back once they retire or leave the firm. EPF is a popular savings scheme availed by the vast majority of employees in India.

Features and Benefits of EPF

An EPF cater to providing a decent amount of financial corpus for employees at their retirement. While being employed, every employee can contribute a part of their salary set aside which matures till their retirement and is given back to them with interest. It is similar to an investment with capital appreciation. There are indeed several benefits attached to availing of an EPF scheme. 

Some of the benefits include 

  • Retirement Benefits:  With various pension schemes, annuities and retirement benefit plans available for individuals, Provident Funds are some of the commonly availed schemes that are also easy to process. When an individual, who contributed to the PF from this earning every month, will get all that money with added interest at the time of retirement. This will give them the much-needed financial cushion to keep their living standards intact.
  • Save Tax: Listed in Section 80C under the Income Tax Act, EPF contributions are considered tax claimable. Employees can make a claim while filing the Income Tax returns and get a tax concession.
  • Interest Gain: The employee will get their entire principal amount back and the interest gained over the principal amount over time. This capital appreciation can help the individual in receiving more out of their contribution, giving them an extra revenue boost.
  • Emergency Funds: Emergencies can come to any place at any time. The PF contributions can also help in such scenarios as the employee can make an early withdrawal as well. There will be certain conditions, such as the contributor can make up to 90% of the total amount withdrawal one year before the retirement date. 

EPF Interest Rates

Interest rates for Employees Provident Fund are decided by the government of India and revised or reviewed at every union budget. The interest rate for the financial year 2021-22 was decreased from the previous year, i.e. 8.50 %. Although the government reviews the interest rates, a few factors affect the calculation of the EPF Interest rates. These factors include the age of the employee, existing PF balance if any, allowances of up to INR 15,000 in the form of dearness and basic monthly pay, the contribution percentage by the employee and the age of retirement.

Furthermore, since the interest rate is given for the whole financial year, the monthly calculation will be on a monthly pro-rata basis. 

EPF Interest rates for the last five years: 

Year  Interest Rate
2021-22 8 %
2020-21 8.50 %
2019-20 8.50 %
2018-19 8.65 %
2017-18 8.55 %

What is EPF Calculator? 

EPF Calculator is an online tool that can help users estimate the amount of provident funds compiled until their retirement. This gives an idea about the financial backup they have after they retire. The EPF Calculator is an excellent tool that assists in much-needed monetary allocation planning and helps give clarity on whether or not to go for alternative sources of investments. The tool computes values based on the inputs provided by the user. These inputs include monthly salary, expected appraisal percentage, years of service left and contribution percentage of EPF. 

Benefits of using EPF Calculator Online

Online EPF Calculator is as beneficial as it is time-consuming. Users can get an estimation in real-time without the need for manual computation of values. One can simply enter their details regarding their income and period of employment, and other relevant information. The tool instantly gives an estimation for the same. The various benefits of using an EPF Calculator online are as follows: 

  • Instant calculation of approximate funds receivable at the time of retirement. 
  • There is no requirement to calculate the PF contributions month by month manually. 
  • Easy and hassle-free tool available in a few clicks. Just enter all required information in the Urban Money EPF Calculator. 
  • Any alters in appraisals will be taken care of with the Urban Money EPF Calculator
  • Dynamic Interest rates will be automatically adjusted with the AI-powered Urban Money EPF Calculator. 

Calculation of EPF Amount 

Calculation of the EPF Amount with the Urban Money EPF Calculator is not complicated. There are just a few mathematical formulas in place, and the tool gets the job done.

For the calculation of EPF, the required particulars are employees’ salary, EPF contribution percent, employer contribution, interest rate and duration of the investment. 

To present the same with an example, let's suppose that an employee is earning INR 25,000 per month. The salary will include several allowances as well, including the dearness allowance. The general EPF contribution is considered to be 12%. Which gives INR 3000 from the assumed salary. Moreover, the employer contribution is 3.67% which gives INR 917.50. Including the pension fund that the employer also contributes, the amount adds to about 8.33% more, making a new total of INR 2082.50. Now add all that, and we’ll get INR 5915. 

Now depending on the age and interest rate of EPF, the total amount receivable can be calculated using the Urban Money’s EPF calculator.

Eligibility Criteria for an EPF Account 

Employees Provident Fund (EPF) scheme is an open opportunity that is extended to all employees of most firms that host at least 20 workers. These firms can be in either the public or Private sector. This technically makes any employee eligible to become a member of the EPF India database. 

Documents Required to Open an EPF Account

There are certain prerequisite document requirements to open an EPF Account. These documents are mandatory and will be used to validate the applicants’ identifications. 

The documents required for EPF registration of different establishments are as follows:

  • For Individuals: The applicant needs to provide their identification proof, such as PAN, driving license, passport, or voter ID. Other than that, they must also submit their residence proof and contact number.
  • For Trusts or a group: Certificate proving the trust incorporation, Memorandum of Association, PAN, residence and identity proof of key members.
  • Partnerships: All the partners’ identification and residence proofs will be required. Furthermore, the firm’s initiation certificate and partnership agreement certificate must be provided.

Frequently Asked Questions EPF (FAQs)

How is EPF calculated?

EPF is calculated based on the contribution per month an employee is paying. For example, if the salary is INR 15,000 and the contribution is 12% of the salary, then the monthly amount becomes INR 1800. This monthly value for a year becomes INR 21,600. For the further calculation of the accumulation, factors such as appraisal and years remaining come to play.

How much PF will I get on a 15000-salary?

PF contribution on INR 15,000 salary will be INR 1800 based on the 12% monthly calculation. This amount will be exponentiated over the years, considering the appraisal benefits and years before retirement. For the EPF, the employer also pitches in about 3% added with the interest rate set by the governing body EPFO. 

How much PF will I get on a 25000-salary?

PF contribution of INR 25,000 will be INR 3000 based on the 12% monthly calculation. The amount will be further exponentiated over the years, considering the appraisal rate and age of the retirement. For the EPF, the employer also makes a small percentage of contribution

How is PF calculated from CTC?

There are a few components of a CTC or Cost to Company. These can be grade pay, basic pay, allowances, rent allowances and Provident Fund. The provident fund is the part where employees contribute a part of their salary, which they eventually receive back after they leave or retire from the company. The contribution is generally 12% of the basic salary.

Is HRA included in PF calculation?

Calculation of PF is usually based on the basic salary. 12% of the basic salary is considered for the provident fund calculation. HRA or House Rent Allowance is

Is PF payable on overtime?

PF cannot be considered overtime as it is not a regular payment that an employee is getting. Which overtimes are subjective to each month and may vary considerably. Although the employees’ insurance is payable for overtime, the employer need not pay any PF.

How many times can We use the EPF calculator?

An EPF calculator is an online computation tool that can be used as often as required. Users can visualise various case scenarios and benefit from the information generated by analysing monetary backup receivables for the post-retirement period.