EPF Calculator

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Use the EPF calculator and get an idea about the EPF amount you are liable to get beforehand. An EPF calculator helps calculate an approximate amount an individual will acquire at the end of his/her service life. Also, using an EPF calculator can ensure other benefits, some of which have been covered in this piece.

Employee Provident Fund (EPF) is a government-managed retirement savings scheme in India. It's mandatory for employees in organizations covered by the EPF Act, of 1952. EPF aims to ensure financial stability post-retirement with employer and employee contributions. 

Governed by rules on contributions, interest rates, withdrawals, transfers, and online services, EPF is a crucial social security measure that offers employees a reliable means of retirement planning.

EPF is a crucial component of the financial portfolio, providing them with a robust foundation for retirement planning; here are some of the benefits of EPF:

• Financial Security: EPF offers a reliable source of income post-retirement, ensuring financial stability. With regular contributions, EPF builds a substantial corpus over time, providing a steady income stream after retirement.

• Tax Benefits: Contributions made towards EPF are eligible for tax deductions under Section 80C of the Income Tax Act. This tax benefit reduces the taxable income for the employee, resulting in lower tax liability and increasing the take-home pay.

• Compound Interest: EPF deposits earn compound interest, leading to substantial retirement corpus growth. The compounding effect allows the EPF savings to grow exponentially, providing higher returns.

• Employer Contributions: In addition to the employee's contribution, employers contribute to the EPF account. This significantly enhances retirement savings, adding to the overall corpus and accelerating wealth accumulation.

• Loan Facility: EPF allows members to avail of partial withdrawals for specific purposes. This loan facility serves as a financial safety net, providing liquidity during times of need without compromising long-term savings goals.

• Savings Discipline: EPF instils a culture of regular savings among employees, promoting long-term wealth accumulation habits. Employees develop a habit of saving systematically by deducting a portion of their salary towards EPF contributions.

• Nomination Facility: EPF provides a nomination facility, enabling members to nominate family members or dependents to receive the accumulated corpus in case of the member's demise. This ensures financial security for loved ones.

• Retirement Planning: EPF forms an integral part of retirement planning, offering a stable source of income. By contributing to EPF throughout their working years, employees build a substantial corpus that supports them financially in retirement.

An EPF (Employee Provident Fund) calculator is a tool designed to help individuals estimate the future value of their EPF contributions and plan their retirement savings effectively. This calculator considers various factors, such as the employee's age, monthly salary, EPF contribution rate, expected interest rate, etc.

By inputting different details into the EPF calculator, individuals can get an approximate idea of how much they can accumulate in their EPF account over a specific period. The calculator also provides insights into the potential growth of the EPF corpus, helping individuals make informed decisions regarding their retirement planning.

Here is a step-by-step guide on how to use Digit’s EPF calculator:

Step 1: Start by entering your personal details, such as your current age and your retirement age, on the same page or Digit App.

Step 2: Next, provide your salary information, including your monthly basic salary, income growth rate, or other salary components, if applicable.

Step 3: Fill in the details regarding EPF contributions, i.e., the percentage of your monthly contributions.

Step 4: Once all the required fields are filled, click the "Calculate" button. The calculator will process your inputs and provide the estimated EPF savings.

EPF (Employee Provident Fund) calculation is a straightforward process governed by specific rules and regulations. Here's how EPF is calculated:

• Basic Salary Calculation: EPF contributions are typically a percentage of an employee's basic salary. Basic salary includes basic wages and dearness allowance (if applicable).

• Employee Contribution: Employees contribute 12% of their basic salary towards EPF. This contribution is deducted directly from the employee's salary and deposited into their EPF account.

• Employer Contribution: Employers also contribute an equal amount to the employee's EPF account. This contribution is in addition to the employee's contribution and constitutes 12% of the employee's basic salary.

• Interest Accrual: EPF contributions earn interest, which is compounded annually. The government determines the interest rate, typically announced by the Ministry of Labour and Employment. The rate is subject to periodic revisions.

• Monthly Calculation: EPF contributions are calculated monthly. The employer's and employee's contributions are deducted from the employee's salary and deposited into the EPF account.

Accumulated Balance: Over time, these monthly contributions, along with accumulated interest, build up the EPF corpus. The EPF balance grows steadily, providing employees with a reliable source of retirement savings.

The benefits of the EPF calculator are numerous. These are discussed below-

• EPF calculator helps individuals know quickly about an accumulated fund at the end of their service life.

• As individuals get an idea about the EPF corpus, they can increase the percentage to earn the desired amount at retirement.

• With awareness of the EPF corpus, subscribers can efficiently plan other investments.

• Using this calculator, individuals can plan their retirement judiciously. If they wish to retire early, they can increase their contribution.

• Armed with knowledge of the PF calculator's multifaceted advantages, uses, and calculation process, individuals can efficiently plan their retirement and ensure a financially secure life.

An EPF (Employee Provident Fund) calculator can be immensely beneficial in several ways:

• Retirement Planning: The calculator can estimate the future value of the EPF corpus by inputting different details. This helps individuals gauge whether their current contributions align with their retirement goals and make adjustments if necessary.

• Financial Awareness: The calculator provides insights into the growth trajectory of the EPF balance over time. It helps individuals understand the impact of regular contributions, compounding interest, and other factors on their retirement savings.

• Goal Setting: The EPF calculator helps individuals set specific retirement savings goals based on their financial situation and future aspirations. They can then track their progress toward these goals and make informed decisions.

• Scenario Analysis: The calculator allows users to simulate different scenarios by adjusting contribution rates, expected returns, and retirement age. This helps individuals assess the impact of various factors on their EPF savings.

• Decision Making: Armed with the insights provided by the EPF calculator, individuals can make well-informed decisions, identify areas for improvement, and take proactive steps to enhance their financial security in retirement.

To know the accumulated amount one will get at retirement, individuals have to follow the process mentioned below -

Step 1: In the relevant box, put your current age and retirement age up to a maximum of 58 years.

Step 2: Enter your basic monthly salary and expected annual average increment in basic salary.

Step 3: Provide the figure for the employer’s and employee’s contributions.

Step 4: Lastly, provide the interest rate (decided by the government) accrued on the EPF balance.

Using the provided data, the EPF calculation formula completes the computing process and shows the result.

Understanding EPF (Employee Provident Fund) contributions is essential for every working individual. Here's what you must know about EPF contributions:

• EPF contributions are a mandatory deduction from an employee's salary. Both the employee and the employer contribute a fixed percentage to EPF.

• Employees contribute 12% of their basic salary towards EPF. This contribution is deducted directly from the employee's salary and deposited into their EPF account.

• Employers also contribute an equal amount to the employee's EPF account, constituting 12% of the employee's basic salary.

• EPF contributions earn interest, which is compounded annually. The government determines the interest rate, which is subject to periodic revisions.

• EPF contributions are eligible for tax deductions. Both employee and employer contributions to EPF qualify for tax benefits up to a specified limit.

• While there is no upper limit on EPF contributions, the mandatory contribution rate is capped at 12% of the employee's basic salary. 

• EPF funds can be withdrawn under certain conditions, such as retirement or resignation, or for specific purposes, like education, medical emergencies, etc.

EPF (Employee Provident Fund) deduction rules govern how EPF contributions are deducted from an employee's salary. Here are the key EPF deduction rules:

• Employees' Provident Fund (EPF) deductions are mandatory for employees earning a monthly salary of up to ₹15,000.

• The current EPF contribution rate is 12% of the basic salary of both the employer and the employee.

• EPF deductions are contributed towards the employee's retirement savings and are managed by the Employees' Provident Fund Organisation (EPFO).

• EPF deductions apply to employees in both the public and private sectors, with few exceptions.

• As per the Income Tax Act, EPF deductions are tax-exempt up to a certain limit, subject to prevailing government regulations.

• EPF deductions are deducted directly from the employee's salary and deposited into their EPF account by the employer.

• EPF deductions are portable and can be transferred from one employer to another if the employee changes jobs.

• EPF deductions can be withdrawn under certain circumstances or for specific purposes, as outlined by the EPF guidelines.

• EPF deductions are crucial in providing financial security and stability to employees during their retirement years.

The following are some fundamental guidelines regarding EPF withdrawal that one should remember:

• Unlike a bank account, money in an EPF account cannot be withdrawn, while the account is used for employment only after retirement. 

•  A partial withdrawal can be requested online for urgent needs, such as medical care, further education, home construction, or residential property purchases. 

• If a person is 54 years of age or older, EPFO permits them to withdraw 90% of their EPF corpus one year before retirement. 

• The EPF corpus may be withdrawn if lockdown or retrenchment causes unemployment before retirement.

• After a month of unemployment, EPFO permits the withdrawal of 75% of the corpus, with the remaining 25% being transferred to a new EPF account upon employment. 

• Employees contributing to the EPF account for five consecutive years are exempt from paying taxes on the corpus withdrawal.

• TDS will be withheld if an early withdrawal of the EPF corpus occurs but not if the total amount withdrawn is less than ₹50,000. 

• If a PAN is filed, the TDS deduction for early withdrawal will be 10%; if not, it will be 30% + tax. 

• If the employer has approved it and the UAN and Aadhar are linked, checking the EPF status can be done online or directly through EPFO.

• To access the EPF amount, the subscriber must declare jobless.

• According to the previous regulations, 100% EPF withdrawal is permitted following two months of unemployment. 

You can check your PF balance in several ways. The following are the different ways to check the EPF Balance:

Check PF Balance Using the UMANG App

Employees can use the Unified Mobile Application for New-age Governance (UMANG) app to check their phone's EPF balance. The app allows users to file and track claims and view their EPF balance. To use the app, members must complete a one-time registration with their UAN-registered phone number.

Let's look at how to view your EPF transactions using the UMANG app:

Step 1: Get the UMANG app from the App Store or Google Play Store.

Step 2: Choose "EPFO" under the "All Services" menu.

Step 3: Click "View Passbook" under "Employee Centric Service."

Check PF Balance Using EPFO Website

To check EPF balance through the EPFO (Employees' Provident Fund Organization) website, follow these steps:

Step 1: Go to the EPFO website.

Step 2: Log in to the Member Portal with UAN and password.

Step 3: Access the EPF passbook.

Step 4: Review EPF balance and transactions.

Step 5: Download or print a passbook if required.

Check PF Balance via SMS

Once your KYC information has been merged with the UAN, take the following actions:

Step 1: Text the following number: 7738299899.

Step 2: The format of the message will be "EPFOHO UAN ENG."

Step 3: You must specify in the SMS what language you would like to communicate in. To achieve this, simply type the first three characters of the language of your choice. 

For example, use the first three characters of the word English, such as EPFOHO UAN ENG, if you want to receive updates in English. 

You can check your balance by SMS only after your UAN has been activated and seeded with your bank account, Aadhaar number, and PAN. If you still need to connect it to your bank account, Aadhaar, or PAN, you must finish the eKYC with your UAN to check your balance by SMS.

Check PF Balance via Missed Call

You can find your EPF balance by placing a missed call from your registered mobile number to the authorised phone. However, this service will only be accessible if your UAN and KYC information are integrated. If you are unable to accomplish this, your employer can assist you.

Once your KYC data have been merged with the UAN, take the actions listed below:

Step 1: Give a missed call from your registered mobile phone to 9966044425.

Step 2: You will get an SMS with your PF data after making a missed call.

Step 3: Before you use a missed call to check your EPF amount, make sure the following conditions are met: 

Step 4: UAN needs to be turned on.

Step 5: Since the missed call feature is only enabled when the missed call is made from your registered number, your mobile number needs to be registered with the UAN.

Step 6: The PAN, Aadhaar, and bank account should be connected to the UAN, among other necessary documents.

To transfer EPF money online, you need to follow the steps mentioned below:

Step 1: Log in to your EPF account using your UAN and password.

Step 2: Click on the ‘One Member – One EPF Account (Transfer Request)’ option in the ‘Online Services’ section.

Step 3: Verify personal information and present PF account details.

Step 4: Click on ‘Get Details’ to view PF account details of the previous employment.

Step 5: Choose either your previous employer or present employer for attesting the claim form.

Step 6: Provide your Member ID or UAN in the required fields.

Step 7: Click on the ‘Get OTP’ button to receive the OTP to your registered mobile number.

Step 8: Enter the OTP to authenticate your identity.

Step 9: A filled-in PF transfer request form will be generated for self-attestation and submission to the selected employer in PDF format.

Step 10: The employer receives an online notification about the EPF transfer request and digitally approves it.

Step 11: Once approved, the PF is transferred to the new account with the current employer.

Step 12: A tracking ID is generated for online application tracking.