EPF Calculator – One stop solution for your PF queries

What is EPF? EPF stands for Employee Provident Fund and the rates and amounts of PF are governed by EPF Organization of India. According to the laws, all companies that have a minimum of 20 employees should be a part of EPFO. The employee contributes 12% (monthly) of his salary (that includes his basic, DA and the monetary component of food allowance) whereas the employer contributes another 12% (monthly) towards the PF of an employee. This gives the assurance to the employee that he will get a lump sum of amount when he decides to leave the organisation or when he retires. PF is also considered to be one of the safest means of investments in the world today. What is EPF Calculator? EPF Calculator is a handy tool in which an employee can key in certain important details and know in an instant as to the value of the amount he would get once he decides to retire. This is one of the most used applications by employees today, as it doesn’t require much work from their side. All it requires it, is to enter some key information. The entire calculation is done by the system and it throws out the final sum in seconds. The details that the employee needs to key into the system are the following: • Details of age • Monthly basic salary • Employee’s Contribution to EPF (in %) • Employer’s Contribution to EPF (in %) • Expected average annual increment to existing salary • Age as to when employee plans to retire • Balance, if any, in any EPF • Interest rate that is currently applicable The Employee Provident Fund is governed by the EPF and Miscellaneous Provisions Act of 1952. The organisation that takes care of all the PF details is called the EPFO comes under the Labour and Employment Ministry of the Government. Through the Provident Fund Calculator, employees can get full details about the amount that they would be entitled to receive at the time of their retirement. Though most of the EPF calculators that are available online use the information that is listed above, some calculators could also expect the employee to key in the component of dearness allowance (in value) in addition to the above list. Employees who contribute up to one Lakh to their EPF are exempted from tax under Section 80C. Investments into EPF earn 8.5% interest per year and one need not pay any tax on this income. Therefore EPF is considered to be one of the safest mediums of investment in the country. EPF calculators give almost accurate details of the PF amount that employees would get a futuristic date and therefore it helps employees to plan well for their future. Nowadays with the advent of technology, lots of people have started to make use of these online Provident Fund calculators to know about the worth of their funds in a jiffy, rather than wait till their retirement date to know the value of their amount like what they used to do in the earlier days

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