EPF Calculator

EPF Calculator

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How to use EPF calculator?

To use an EPF (Employee Provident Fund) calculator, follow these steps:

  1. Enter your monthly basic pay and dearness allowance (DA).
  2. Enter the percentage of your basic pay and DA that is contributed to your EPF account by you and your employer.
  3. Enter the number of years you have been contributing to your EPF account.
  4. Enter the current balance in your EPF account.
  5. Click on the calculate button.

The EPF calculator will then calculate the estimated maturity amount of your EPF account based on the inputs provided.

Please note that the actual maturity amount may vary depending on various factors such as changes in the EPF interest rate, additional contributions made by you or your employer, and any withdrawals made from the EPF account before maturity.

What is EPF in investment industry?

EPF stands for Employee Provident Fund, which is a retirement benefits scheme offered to salaried employees in India. Under this scheme, a portion of the employee’s salary is deducted each month, along with an equal contribution from the employer, and deposited into a retirement account.

The funds in this account can be withdrawn upon retirement, providing a source of income for retired employees. EPF is a mandatory scheme for employees working in organizations with more than 20 employees and is regulated by the Employees’ Provident Fund Organisation (EPFO).

What are the benefit of EPF investment?

EPF investment offers several benefits, such as:

  1. Retirement savings: EPF helps individuals build a retirement corpus over time by regularly contributing a portion of their salary.
  2. Tax benefits: EPF contributions up to a certain limit are eligible for tax deductions under Section 80C of the Income Tax Act. The interest earned on EPF deposits is also tax-free.
  3. Guaranteed returns: EPF offers a guaranteed rate of return, which is typically higher than inflation.
  4. Employer contribution: Employers are required to contribute to their employees’ EPF accounts, which adds to the overall savings.
  5. Low risk: EPF is a low-risk investment option as it is backed by the government.
  6. Loan facility: EPF members can also avail of loan facilities against their EPF balance for various purposes, such as buying a house or for medical emergencies.
  7. Transferable: The EPF account can be easily transferred when an employee changes jobs.

Comparison between EPF and PPF

Here is a table comparing the differences between EPF and PPF:

CriteriaEPF (Employee Provident Fund)PPF (Public Provident Fund)
EligibilityAvailable to salaried employees onlyAvailable to all Indian residents
PurposeRetirement savings and social securitySavings and tax benefits
ContributionEmployer and employee both contribute equallyIndividual contribution
Interest rateVaries quarterly, but usually higher than PPFFixed by the government, lower than EPF
WithdrawalPartial withdrawal allowed under certain circumstancesPartial withdrawal allowed after completion of 5 years
Maturity periodWithdrawal allowed after retirement or 58 years of age15 years, can be extended in blocks of 5 years
Tax benefitsContributions, interest earned and withdrawal exempted from taxContributions and interest earned exempted from tax, withdrawal taxed
Loan against accountAvailableAvailable after 3 years of account opening
NominationNomination facility availableNomination facility available

It’s important to note that both EPF and PPF have their own advantages and disadvantages, and the choice between the two depends on individual financial goals and circumstances.

What are the interest rate of EPF and PPF?

Here’s a table comparing the interest rates of EPF and PPF:

Investment SchemeInterest Rate
EPF8.50% for the financial year 2020-2021
PPF7.1% for the quarter January-March 2022

Please note that the interest rates are subject to change every year and may vary based on the government’s decisions.

What is the formula of EPF calculator?

The formula for EPF calculator is as follows:

Monthly contribution from employee: Basic pay x Employee EPF contribution rate Monthly contribution from employer: Basic pay x Employer EPF contribution rate Interest accrued on EPF balance: (EPF balance + monthly contribution from employee + monthly contribution from employer) x (annual interest rate/12) Total EPF balance after a certain time period: EPF balance + total interest accrued over the time period

How to withdraw my EPF balance?

To withdraw your EPF balance, you need to follow the steps given below:

  1. Visit the official website of the Employees’ Provident Fund Organisation (EPFO) and log in to your account.
  2. Under the ‘Online Services’ section, click on ‘Claim (Form-31, 19 & 10C)’.
  3. Enter your bank account details and click on ‘Verify’.
  4. Select the type of withdrawal you want to make – full withdrawal or partial withdrawal.
  5. Fill in the necessary details such as reason for withdrawal, amount to be withdrawn, etc.
  6. Upload the required documents such as PAN card, Aadhaar card, bank passbook, etc.
  7. Submit the claim and wait for the approval.

Once your claim is approved, the amount will be credited to your bank account within a few days. It is important to note that you can only withdraw your EPF balance after completing 5 years of continuous service.

What is the employer contribution in EPF?

In EPF (Employee Provident Fund), the employer is required to contribute an amount equal to 12% of the employee’s basic salary plus dearness allowance (DA) towards the employee’s EPF account.

Out of this 12%, 8.33% is contributed towards the Employee Pension Scheme (EPS) and the remaining 3.67% is contributed towards the Employee Provident Fund (EPF).

What is the maximum amount of EPF contribution in your salary?

The maximum amount of EPF contribution in your salary is 12% of your basic salary plus dearness allowance (DA). However, the employer can choose to contribute more than the mandatory 12%.

It’s important to note that the maximum contribution limit for employee and employer combined is Rs. 7,500 per month. This means that if your basic salary plus DA is higher than Rs. 62,500 per month, your EPF contribution will still be limited to Rs. 7,500 per month.

How to check the current balance of EPF?

You can check your current EPF balance by following these steps:

  1. Visit the official website of the Employees’ Provident Fund Organisation (EPFO) at https://www.epfindia.gov.in/site_en/index.php.
  2. Click on the “For Employees” option on the homepage.
  3. Under the “Services” section, click on “Member Passbook”.
  4. You will be redirected to a new page. Enter your Universal Account Number (UAN), password, and captcha to log in to your account.
  5. Once you are logged in, you will be able to see your EPF balance and other details like your contribution, your employer’s contribution, and the interest earned on your balance.

Note: You must activate your UAN and link it with your Aadhaar and PAN in order to check your EPF balance online.

What are the tax benefit of EPF investment?

EPF or Employees’ Provident Fund is a tax-saving investment that offers several benefits to investors. Here are the tax benefits of EPF investment:

  1. Tax Deduction: The amount invested in EPF is eligible for tax deduction under Section 80C of the Income Tax Act. The maximum amount that can be claimed as a deduction is Rs. 1.5 lakh per annum.
  2. Tax-Free Interest: The interest earned on EPF is tax-free.
  3. Tax-Free Withdrawals: The withdrawals from EPF after the completion of 5 years of continuous service are tax-free.
  4. No Tax on Employer’s Contribution: The employer’s contribution to EPF is tax-free.
  5. No Wealth Tax: EPF is not considered as wealth and hence is not liable for wealth tax.

Overall, EPF investment is a great tax-saving option for salaried individuals, as it not only helps in saving taxes but also offers a guaranteed return on investment.