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The Employees' Provident Fund (EPF) is a retirement savings scheme that assists people in accumulating a sustainable retirement corpus. Our EPF or PF calculator can help you calculate the amount of money you will have in your Employees' Provident Fund (EPF) when you retire.
EPF, generally known as PF (Provident fund) is a retirement savings fund to which both employers and workers contribute to the employees' retirement savings funds. It was established under The Employees' Provident Funds Act 1952. Employees' Provident Fund Organisation (EPFO) manages the fund. Employers who have a minimum of 20 employees are required to have EPF accounts for their employees. However, some organisations with less than 20 employees may also help their employees open EPF accounts.
For firms with over 20 employees, it is mandatory for employees with a salary of less than Rs.15,000 (basic salary and dearness allowance) to open an EPF account. However, most organisations make the facilities available to all employees, regardless of their salary. Moreover, thanks to Universal Account Number (UAN), it is easy to transfer your EPF corpus from one organisation to another.
Every month, an employee must contribute 12% of their basic and dearness allowance to EPF. The employer contributes the same amount and matches this payment. Out of the 12%, 8.33% is directed towards Employee Pension Scheme and 3.67% to EPF. However, the employee's total contribution of 12% goes towards EPF.
When you retire, you can withdraw a lump sum from EPF. Because the Government of India manages the EPF and guarantees a return, it is one of the most preferred retirement savings schemes. The rate of interest on the contribution is decided by the EPFO and can vary on an annual basis.
The EPF or PF calculator is an online financial calculator that shows you the total amount of money you'll have in your EPF account when you retire. You can figure out the total amount accumulated in your EPF account, which includes both your and your employer's contributions and the interest that the investment has earned.
After entering the required information, the EPF calculator will show you the accumulated corpus through EPF available at retirement. You can enter your present age, basic monthly salary and dearness allowance, monthly EPF contribution, and retirement age up to 58 years in the EPF calculator's formula box. You can also enter the current EPF balance if you know the figure.
The contribution to EPF needs to be as per the government guidelines. Every employee's provident fund in a company comprises two types of contributions. Both the employee's and the employer's contributions are important.
Every month, the employee contributes 12% of their basic pay and Dearness Allowance to the EPF account.
For instance, if the basic monthly income is Rs 20,000(assuming there is no dearness allowance), the employee contribution will be 12% of 20000, or Rs 2400.
The employer is expected to contribute 8.33% of the 12% to the Employee Pension Scheme, with the remaining 3.67% going to the EPF. As a result, Rs.734, i.e., the employer, contributes 3.67% of Rs 20,000 towards the EPF.
As a result, for a person earning Rs 20,000 per month, the total contribution to the EPF account will be the employee contribution plus the employer contribution, which will be Rs. 3134.
The EPF's current interest rate is 8.1% for the 2022-23 fiscal year. The rate of interest for the EPF scheme is set by the EPFO every year. The finance ministry reviews the rate of interest changes based on the current market scenarios. This interest, however, is calculated at the end of each month rather than at the end of the year.
After the financial year is through, it is put into the EPF account.
In this case, the EPF contribution in the first month is Rs. 3134. Another contribution of the same amount will be made in the second month. As a result, the total balance in the account would be Rs 6268. It now qualifies for monthly interest as there is no interest for the first month. So, if the annual interest rate is 8.10%, the monthly rate is 8.10/12, or 0.675%.
The interest earned will be totalled together and deposited in the EPF account at the end of the year. As a result, 0.675% of Rs.6268 is Rs.42.30, which is the second-month interest calculated on your EPF. This will continue to rise as monthly contributions are increased throughout the financial year.
Here's the snapshot:
Basic salary + dearness allowance |
20,000 |
Employees' EPF contributions |
2,400 |
Employer’s contribution towards the EPF |
734 |
Employer’s contribution towards EPS |
1,666 |
The total EPF contribution |
3,134 |
The interest rate for FY 2021-22 |
8.10% |
Interest rate per month |
0.675% |
Interest received |
42.30 |
However, instead of making a manual calculation, you can calculate the EPF amount with the help of an online EPF calculator.
ET Money's EPF Calculator is easy to use. You need to add the inputs and instantly get the results.
Step 1: Enter your basic monthly salary
Step 2: Add your current age
Step 3: Add the age that you will retire at. The retirement age will vary between companies. However, the maximum retirement age for private-sector employees is 65 years.
Step 4: Add your accumulated EPF balance, if you are aware, along with your employer's contribution and your contribution as a percentage.
Step 5: Enter 12% in the box for employee’s EPF contribution and employer’s EPF contribution
Step 6: Enter the current EPF interest rate and hit 'Calculate'.
ET Money's EPF calculator will calculate the total contribution, total interest income, and maturity amount. You can also add the increment you expect every year and recalculate the EPF amount you can expect at retirement. If you expect an increase in your basic monthly salary, you can add the expected figure and calculate it again. This will help you get a better idea of the amount of money you can accumulate through your EPF scheme.
You can also see the difference between the total amount invested and the amount after maturity in a graphical manner.
An EPF calculator will help you know how much you will garner through EPF contributions. You can plan your retirement planning accordingly. If you feel that the maturity amount is not enough, you can invest in other similar investment options to build an adequate retirement corpus.
Estimate future amount: The ET Money's EPF Calculator shows you how much corpus you will have in your EPF fund when you retire. You gain a greater understanding of the retirement fund, which aids in the management of other investments.
Boost your retirement savings: You can use the ET Money EPF Calculator to boost your retirement contributions. If you believe your retirement fund is insufficient to satisfy your needs, you can look at other similar retirement investment options to supplement your retirement corpus.
Easy to use: The ET Money EPF Calculator is simple and quickly calculates your EPF corpus in retirement, total contribution, and interest income.
Automatically considers the current EPF interest rate: The EPF calculator will automatically consider the current EPF interest rate to calculate the interest earned and maturity amount. So, you do not have to worry about the changes in the EPF interest rate.
Your basic salary and dearness allowance are used to calculate the EPF amount. Your contribution to EPF would be 12% of your basic salary and dearness allowance, while your employer contributes 3.67% to EPF and 8.33% to EPS.
To calculate EPF manually, you need to know your basic salary, dearness allowance, contribution, employer contribution, and current EPF interest rate. The interest rate is calculated monthly and added to the EPF contribution from the second month.
Yes, the ET Money EPF calculator is a free online tool that anyone can use to calculate their EPF contributions and maturity.
EPF amount can be withdrawn completely when the individual retires or has been unemployed for over two months.
In other cases, the employee can only make partial withdrawals. Marriages, medical purposes, education, purchase of land, home loan, and home loan repayment are some reasons for which partial withdrawal is allowed.
