Employees Provident Fund or EPF is a retirement benefit that is offered by the Employees Provident Fund Organisation. Each month there is a contribution that is made to the Provident Fund by both the employer and the employee. Our PF calculator helps you to quickly calculate the retirement benefits. There is also an interest rate that comes into the picture that you need to feed into the EPF Calculator.
The term EPF stands for Employee’s Provident Fund.
It is a retirement benefits scheme comes under the Employees Provident Funds and Miscellaneous Provisions Act of 1952. It is managed by the Employees Provident Fund Organisation (EPFO). It covers all the firms wherein the headcount is equal to or more than 20 persons and certain conditions and exemptions are put in place to those organizations wherein the headcount is less than 20.
Under the EPF scheme, an employee has to make a certain portion of contribution from his/her salary towards the scheme and the employer also has to make an equal contribution. The benefits of the scheme can be enjoyed by the employee post-retirement as he/she is entitled to get a lump sum amount which includes self contribution, employers contribution along with the accumulated interest amount.
As per the rules of the EPF an employee, whose pay is more than Rs 15,000 per month at the time of joining is not eligible to become a member of EPF and is termed as a non-eligible employee. Those employees who are drawing less than Rs 15,000 per month will have to mandatorily become members of EPF. If in case, an employee is drawing a salary above the prescribed limit (currently at Rs 15,000) can still become a member after securing permission from the Assistant PF Commissioner, if both the employee and his/her employer agree for it.
As is the case with every calculator, you need to feed in certain details. In our calculator, you need to feed in details like age, monthly salary which is basic salary, current PF balance, employee contribution to PF, employer contribution to PF, expected increase in salary, when you expect to retire.
The Employees Provident Fund Organisation manages the EPF, while the interest rates are largely determined by the Government of India. The interest rate on the EPF changes every year, as decided by the government. This largely depends on the general interest rate movement in the country.
The EPFO has been managing the same for many years now.
It is easy to download and check your epf balance online. To do so:
a) Visit: https://passbook.epfindia.gov.in/MemberPassBook/Login
b) Enter your UAN number and password. In case you do not have a UAN number or do not know it, please talk to your company.
b) Enter the captcha and check your PF balance
The EPF is beneficial on account of a number of reasons. Let us see some of the reasons for the same.
1) If you have worked in a private organisation for 5 continuous years, you get tax free income from the PF.
2) You can also get a pension, as you would be subscribed to the EPS, provided you meet the terms and the conditions.
3) The EPF also provides an insurance cover to the tune of Rs 2.5 lakhs to Rs 6 lakhs.
4) In case you do not complete the stimulated time period of 10 years to receive pension, the amounts would be returned to you along with PF.
One of the data that could change in the provident fund calculator is the interest rate. Remember, the interest rate on the PF is fixed by the government and one needs the Ministry of Finance to give its consent. So, this data would change every year. For 2018-19 the government notified an interest rate of 8.65 per cent, which is not bad at all. So, it is important to remember when you calculate your EPF, the data should be correct before the calculator is used. This is very important or else there is a high possibility that the amount that is so calculated would be totally incorrect.