How is EPF calculated?

The employee contributes 12 percent of his or her basic salary along with the Dearness Allowance every month to the EPF account. For example: If the basic salary is Rs. 15,000 per month, the employee contribution shall be 12 % of 15000, which comes to Rs 1800/-. This amount is the employee contribution.

How is EPF calculated in India?

EPFO calculates monthly closing balance every month and then the interest is calculated. The interest is calculated by multiplying the monthly balance with interest rate. Since the interest rate is 8.50 per cent annually, it will be divided by 12 to calculate the monthly interest (8.5/12 gives 0.7083).

How much PF will I get after retirement?

Your EPF membership will continue, even after withdrawal before the age 58, as the employer’s portion is paid only after age 58. You can however withdraw 90% of your entire EPF amount after the age of 57. As per the norm, the employee contributes 12% of the basic pay plus Dearness Allowance, to the EPF account.

How is PF pension calculated?

The pension amount that you get from EPF after retirement depends on your pensionable salary and pensionable service. Multiply your annual pensionable salary with the number of years of your pensionable service. Divide the sum by 70, and you will get your EPF pension.

What’s a basic salary?

A basic salary is the amount of money you earn before any add-ons or deductions. One may earn a certain amount and then get dividends from shares or overtime remuneration. Those at a junior level usually take a higher percentage of their basic salary compared to those at senior level.

Is there an EPF calculator for employees?

Employees PF calculator is an online tool that helps in estimating the EPF corpus on retirement. All you need to provide is basic details like retirement age, basic monthly salary, annual expected salary increase and contribution to EPF. With the estimated value on retirement, you plan your retirement.

What is current interest rate on EPF in India?

For example, the current rate of interest on EPF is 8.65%. If it changes during the financial year due to any new legislation, you will be notified once you log in. When you use Groww’s EPF calculator in India, you are assured of quality and reliability. This is the data you should keep in handy before you use the calculator.

How does Employee Provident Fund ( EPF ) work in India?

Employee Provident Fund was set up after the EPF Act was passed in the Parliament. Under the law, the Employees Provident Fund Organisation of India (or EFPO) controls the funds deposited by both the employee and employer in a permanent account, affixed by an UAN or Unique Account Number.

How to use the EPF calculator on Scripbox?

How to use Scripbox’s EPF Calculator? 1 Firstly, enter your age on Scripbox’s EPF Calculator. 2 Next, enter your desired age of retirement, basic salary and expected annual increase in salary. 3 Then enter your contribution and employer’s contribution to the Provident Fund. 4 Finally enter the current interest rate.