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PF Calculator is an online tool used to estimate how much amount a person will accumulate in his or her PF account until his retirement. It is also used to check whether the present monthly contribution is adequate to reach the pre-determined retirement corpus. The tool is very useful, simple, convenient, and free to use for all provident fund related calculations. The key inputs to the calculator are:
This is a basic structure of a PF calculator, through which you can have a general idea about your PF investment. But the features and input data changes according to the type of provident fund.
Let us know more about different types of provident fund in India and their calculators.
There are six different types of provident funds in India that helps to cover the large, diverse user base. Provident Funds are an attractive and preferred investment option for many and helps to deliver an adequate amount as retirement corpus.
Public Provident Fund, or the PPF, was introduced in 1968. It is a risk-free, tax-free retirement saving scheme which can be opened by any Indian citizen, both salaried class or self-employed. However, the scheme is restricted for NRIs, but, if it has been opened prior to an individual becomes an NRI, he/she can continue it till maturity.
All PPF accounts have a maturity period of fifteen years, which can be extended by another five years after maturity, or as long as you want. The minimum yearly contribution to the scheme is Rs. 500, and the maximum permissible limit is Rs. 1.5 lakhs per annum. A PPF account can be opened with any of the 19 nationalised banks including SBI, any private Indian bank or at a post-office. A PPF account holder can raise a loan against the PPF balance and also partially withdraw from it.
A PPF calculator is a versatile tool, available online for free to calculate PPF returns over a pre-determined period and with specific set frequency.
The key inputs to the PPF calculator are:
PPF calculator also helps you to know how much sum you are eligible for a loan or how much you can withdraw from your PPF balance. In general case, a PPF account holder can raise a loan of 25% against the PPF balance after the third year, till the end of sixth year.
The loan amount will be based on PPF balance for the year preceding the year of PPF loan application.
The loan must be repaid within three years, and the interest on a loan issued is 2% higher than the PPF rate.
For withdrawal from PPF account, the account holder is allowed to withdraw after the sixth year, up to 50% of the PPF balance in the year preceding the year of withdrawal application.
And if a loan has been raised against PPF balance, then you can withdraw in the fourth year preceding the year of the loan application.
PPF enjoys EEE tax status which means triple tax exemption benefit. Following are the tax exemptions.
Employee Provident Fund, or the EPF, is a saving schemes introduced under Employees Provident Fund and Miscellaneous Act, 1952, which is governed and managed by the Ministry of Labour and Employment.
The fund's governing body consists of representatives from government, employers, and the employee. It is mandatory by law for every organisation with an employee count of more than twenty to be a signatory to EPFO.
The scheme requires an equal contribution of 12 % of the employee's salary (Basic+DA) from both the employer and the employee. The contributions, as well as the accumulated amount, earn a fixed level of interest (notified by the government) each year until the retirement.
This scheme has a wide user base, with over six crore subscribers and is governed under three acts.
The employer contribution of 12% includes 8.33% towards the Employee’s Pension Scheme and 3.67% towards the Employee’s Provident Fund.
However, an employer can only contribute Rs 1,250 or 8.33%, whichever is minimum towards the pension scheme. The difference in the amount is contributed to the EPF Fund by the employer.
An EPF calculator provides a detailed and comprehensive estimate of your EPF balance at the time of your retirement. The key inputs to an EPF calculator are:
An EPF calculator shows the year-wise details of all contribution by both employer and the employee, opening and closing balance of both EPF and EPS at the end of each year till the age of retirement.
Contribution to EPF account is tax-deductible under Section 80 C. Plus, interest earned as well as maturity proceeds are exempt from tax.
Unrecognized Provident Fund or the UPF, are those provident fund schemes, which are started by employer and employee of an establishment, but is not recognised by Commissioner of Income Tax or is bound by the rules of EPFO.
Since the scheme is not recognised by the government, the benefits and tax treatment on withdrawals are limited compared to any regular PF schemes like EPF and PPF.
One can use the basic PF calculator, to calculate their returns and interest earned on UPF contributions.
Voluntary Provident Fund or the VPF is an extension of EPF, where any salaried class employee is allowed to contribute in excess of his threshold limit of 12% to his EPF account.
The maximum contribution allowed is 100% of the Basic Salary and Dearness Allowance, and the interest earned on excess contribution is at the same rate that of EPF. The plan is fully optional to an employee, and there is no obligation for them to contribute.
The VPF facility is available to those who receive their monthly income through salary. Moreover, once it has been started, it cannot be terminated mid-way until the completion of minimum five years tenure.
VPF account can be opened by submitting a VPF registration form to your employer, requesting an additional contribution to the EPF. Once, approved, your existing EPF account will serve as VPF account.
For calculation of full estimates of retirement benefits under voluntary provident funds, you can use the EPF calculator. In place of employee's monthly contribution, you need to enter your total monthly contribution (EPF+VPF), and every other input remains the same.
General Provident Fund or the GPF is a provident fund meant only for the government employees, who were hired before 1st January 2004. GPF is mandatory for all temporary government employees who have had a continuous service of one year, all permanent government employees and re-employed pensioners. It is managed by Department of Pension and Pensioner’s Welfare under the Ministry of Personnel, Public Grievances and Pensions.
In this fund, both the government and employee contribute 6% of employee's total salary (Basic + DA). However, the employee has the option to contribute in excess of 6%. The accumulated amount is paid at the time of retirement or at the superannuation of the employee.
Online free GPF calculators are very handy to calculate the interest accrued on GPF contributions. One of the main features of GPF interest calculators are, you can include monthly contribution, loans paid back on a monthly basis and withdrawal from time to time, to calculate the interest accurately.
Key inputs in GPF interest calculator are:
Statutory Provident Fund is another type of provident fund, restricted for the government, semi-government, university, or education institutes affiliated to university employees.
It was introduced under the provisions of the Provident Fund Act, 1925 and the scheme features are similar to General Provident Fund.
PF balance can be checked online through different modes. Following are the methods through which users can check the balance of different PF accounts.
EPF balance can be checked through an SMS, missed call, EPFO portal, or the EPFO app. Below are the details, through which you can check the EPF balance.
Via EPFO Portal :
Via SMS :
To know your EPF balance update via SMS, you need to integrate UAN and KYC details.
After successful integration, send the message EPFOHO UAN ENG to 7738299899
To inquire about your EPF balance by giving missed call, first integrate your UAN and KYC details.
Then, give a missed call to 011-22901406 from your registered mobile number. Shortly after placing the missed call, you will receive an SMS with details of EPF balance.
You can check you PPF balance by visiting the respective bank where you have opened the PPF account, and update the PPF passbook, to check the updated PPF balance. Since all PPF account is linked to your Savings account, you can check it through net banking.
For checking your GPF balance, you need to visit the website of Accounts General of the respective state that you are registered with. In the GPF portal, you need to select your department series, enter GPF A/C number, and mobile number, in order to get your annual GPF statement.
Interest on PF is calculated on the total contribution made by both employer and the employee. There are two methods, through which you can calculate interest on your PF balance.
By the Formula Method, suppose the EPF balance is Rs 10,000, and the interest rate is 8.65%, then you can calculate applying this formula. (Interest/ 12) x EPF Balance = (8.65 % / 12) x 10,000 = Rs 72 By the Step Method, you calculate the monthly interest percent and then calculate the actual monthly interest amount. = 8.65 % / 12 = 0.72%
Therefore, your monthly interest comes in at Rs. 72 with Rs. 10,000 as EPF balance.
Interest is calculated on the opening balance of the start of each month, and hence, it is always advised to make the contribution before the fifth of every month to get the maximum interest benefit.
When can you withdraw the balance from your EPF account?
EPF balance can be withdrawn partially under certain circumstances, like medical emergencies, house purchase, financing a child's higher education, or in case of unemployment. Since EPF is a retirement corpus, there are limits to withdrawal and the approval depends on reasons. A subscriber is allowed to withdraw 90% of the EPF corpus, one year before the retirement age.
What to do if the employer is not depositing to your EPF Account?
To know whether your employer is depositing to your EPF account or not, you can ask a copy of Form 12 from your employer. If not furnished, then you can file an RTI application to the regional EPFO.
If found guilty, you can file a criminal case against the employer with the Police or the Chief Vigilance Officer appointed by the labour ministry with the copy of the salary slip showing deductions, but not being reflected in the EPF balance.
An employer is liable to pay interest in case of delay in deposit of PF money.
How to withdraw money from your EPF Account without the employer’s signature?
You can withdraw from your EPF account without the employer's signature using your UAN. But the UAN should be activated by the employer and should be integrated with your KYC details.
How to know your EPF balance Online?
You can know your EPF balance online via EPFO Portal or EPFO's UMANG app using your UAN.
How to withdraw balance from your EPF account
EPF withdrawal can be made online without an employer's signature.
You can place an online withdrawal request using UAN in the EPFO portal by submitting the online claim form (Form 31, 19, and 10 C).
How to check your EPF claim status online?
You can check your claim status online on the EPFO portal by selecting 'Track Claim Status' under 'Online Services.'
How do you calculate PF?
In provident fund (PF), both employer and the employee makes a contribution of 12% of employee's basic salary plus dearness allowance.
How is EPF pension calculated?
The employer's 12% contribution to the EPFO, includes 3.67% to the EPF Fund and 8.33% to the Employee Pension Fund Scheme. However, an employer can only contribute Rs 1,250 or 8.33% of the employee's basic pay plus DA, whichever is lower towards the pension scheme.
How is PF calculated in CTC?
As CTC includes the employer's contribution to the EPF Fund, the EPFO rule calls for a deduction of 12% of the employee's basic pay, and an equal amount should be contributed by the employer.
How much PF gets deducted from salary?
In the case of EPF, UPF, and SPF, an employee has to make a contribution of 12% on Basic Salary plus DA. Whereas, in the case of GPF, the employee has to make a contribution of 6% on Basic Salary plus DA.