Most private sector employees are qualified to receive benefits after they retire if they work in the organised sector. Unlike their private sector counterparts, government workers are also eligible for pensions. The Employee Provident Fund was founded after the EPF Act was passed by Parliament. By law, the Employees Provident Fund Organization of India, or EFPO, is in charge of the funds placed in a permanent account to which both the employer and the employee have attached a Unique Account Number (UAN). An EPF calculator can help you determine your savings with accuracy.
The PF calculator uses proprietary technology to retrieve the accurate total each time you enter data. Because provident funds ensure either future prosperity or unemployment, they are very useful for future financial decision-making.
This EPF (Employees' Provident Fund) Calculator is designed to help you estimate your EPF balance at retirement based on your current salary and other variables. The calculator uses the following fixed values and assumptions:
Retirement Age: The calculator assumes a retirement age of 60. This is the standard retirement age used for calculations unless specified otherwise.
Interest Rate: The annual interest rate applied is 8.1%. This rate is compounded annually, reflecting the current guidelines set by the EPFO (Employees' Provident Fund Organisation).
Employee Contribution: The employee contributes 12% of your monthly Basic + DA (Dearness Allowance) to the EPF.
Employer Contribution to EPF: The employer contributes 3.67% of your monthly Basic + DA to the EPF. The employer’s contribution (8.33%) goes to the Employee Pension Scheme (EPS).
Expected Annual Salary Increase: This value is provided by the user and represents the expected average yearly increase in salary. It helps forecast how contributions will increase over time as the salary increases.
The EPF Calculator estimates your total provident fund accumulation at retirement. It considers the compound interest on your and your employer's contributions, which grow annually based on your salary increment. Here's how the calculation is carried out:
Initial Inputs:
Monthly Basic + DA (Dearness Allowance): The base salary on which contributions are calculated.
Current Age: The age at which the calculation starts.
Expected Annual Salary Increase: The percentage increase in the Basic + DA each year.
Contribution Calculation:
Employee Contribution: 12% of the Monthly Basic + DA.
Employer Contribution to EPF: 3.67% of the Monthly Basic + DA.
Annual Accumulation and Interest Calculation:
Annual Contribution: Sum of all monthly contributions (employee + employer) over one year.
Interest Application: The interest is compounded annually at a rate of 8.1%.
Adjustment for Salary Increment:
Each year, the Monthly Basic + DA is increased by the percentage of the expected annual salary increase, which in turn increases both the employee's and employer's contributions for the subsequent year.
Projection Until Retirement:
This process is repeated each year until the retirement age of 60. The contributions increase based on the salary increments, and the interest is applied to the growing balance each year.
Final Output:
The calculator provides the total EPF balance at the age of 60, which includes the compounded annual interest on the accumulated contributions.
Using our PF calculator in India, you can quickly find out where your hard-earned money is being held and how much interest it has accrued.
A few fascinating advantages of using an online EPF pension calculator are as follows.
It is not necessary for you to manually calculate your total contributions each time.
We promise that the PF calculator available online will always work as intended.
You shouldn't be alarmed if the contribution ratios or interest rates fluctuate over time. The EPF calculator will automatically factor in the change.
Finally, every time you use our EPFO calculator, you automatically receive notifications of any recent transactions, contributions, and changes, if any. For example, the EPF's interest rate is currently 8.1%. Should any legislation change during the fiscal year, you will be notified upon logging in.
When using the HR HUB EPF pension plan calculator in India, you can be confident in its dependability and quality. Before using the calculator, you should know these things.
| Your basic monthly salary, including Dearness Allowance (DA) |
| Your contribution to the EPF |
| Your employer’s contribution |
| Your retirement age (Including VRS, if you have such plans.) |
| Your current EPF balance |
| Current EPF interest rate |
Let us understand the example:
Suppose you start with a Monthly Basic + DA of ₹50,000 at age 30, expecting a 6% annual increase in salary and an annual interest rate of 8.1%. The initial annual contribution would be calculated as follows:
Employee Contribution per Month: ₹50,000 × 12% = ₹6,000
Employer Contribution to EPF per Month: ₹50,000 × 3.67% = ₹1,835
Total Monthly Contribution: ₹6,000 (employee) + ₹1,835 (employer) = ₹7,835
Annual Contribution for the First Year: ₹7,835 × 12 = ₹94,020
The EPF balance at the end of the first year, starting from zero, would be:
Balance at end of Year 1 = ₹94,020 × (1 + 0.081) = ₹101,637.62
Then, the Monthly Basic + DA for the second year would increase by 6%, and the contributions would be recalculated based on the new salary, continuing each year until retirement.
It's easy to access and use our EPF interest rate calculator. After entering the values, the result will show in a matter of seconds.
Step 1: Type in your age and base pay.
Step 2: As soon as you input the values, the employer's contribution (EPS+EPF), total interest earned, and total maturity amount will be displayed.
With HR HUB's many calculators, which are listed below, you have several options. Any of our calculators is available for free use. Updates are sent to them often to avoid glitches.
The annual interest rate for Employee Provident Funds (EPF) is determined by the Employees' Provident Fund Organization (EPFO). On the official EPFO website or through reliable financial news sources, you may find the most recent rate. For example, the current EPF interest rate (2024-25) is 8.25%.
Partial withdrawals are allowed in certain situations, such as marriage, pursuing additional education, building or purchasing a home, experiencing a medical emergency, and more. There are certain eligibility conditions and restrictions for each type of withdrawal.
For example, only employed individuals can withdraw their PF funds (fully or partially). If they have been unemployed for at least one month, they can withdraw up to 75% of the funds, and if they have been unemployed for two months or more, the balance. An account holder can easily withdraw up to 90% of the accumulated funds after they reach 54 years of age or a year before retirement/superannuation.
Typically, 12% of the employee's base pay plus dearness allowance is contributed to the Employee Provident Fund (EPF) by both the employer and the employee. Of the employer's contribution, 8.33% goes to the Employees' Pension Scheme (EPS) and 3.67% goes to the Employees' Provident Fund (EPF).
You can transfer your EPF account to your new employer when you change jobs. You may conveniently complete this online through the EPFO portal by using your Universal Account Number (UAN), which remains constant throughout your employment.
No, the amount of the EPF maturity that you receive when you work for five consecutive years is often tax-free. Contributions made to the Employee Provident Fund (EPF) may be tax deductible under Section 80C of the Income Tax Act, and in some cases, the interest earned is also exempt from tax.
Every EPF member is given a unique 12-digit number known as their Universal Account Number (UAN). It acts as a catch-all for several Member IDs that are issued to a person by several employers. EPF account tracking and management are made easier with the use of the UAN.
Ready to discuss your needs? Contact our dedicated team today for personalized guidance and to explore how our solutions can transform your business operations.
