EPF Calulator

The Employees' Provident Fund (EPF) calculator is a tool used to calculate the retirement savings accumulated in the EPF account. The EPF is a retirement savings scheme in India, where both the employee and employer contribute a certain percentage of the employee's salary towards the EPF account.

Here are the steps to use an EPF calculator:

Enter your basic monthly salary.
Enter your monthly DA (Dearness Allowance) or any other allowances which are eligible for EPF contributions.
Select your age, current EPF balance, and the age at which you plan to retire.
Enter the percentage of contribution made by you and your employer.
Click on the "calculate" button.

The EPF calculator will then calculate the total contribution made towards your EPF account, along with the interest accrued over the years. It will also provide an estimate of the retirement corpus that you will accumulate at the age of retirement, assuming a steady rate of return on your EPF contributions.

Please note that the EPF calculator is an estimate and the actual amount may vary based on various factors such as changes in your salary, changes in the EPF interest rate, and so on.

Employee’s contribution towards EPF = 12% of (Basic pay + DA)

12% of employer’s contribution is divided into two parts, 8.33% towards employee’s pension scheme (EPS) and 3.67% towards Provident fund.

Exactly! Your explanation is spot on. Here’s a quick recap with a bit more detail and a simple formula to help you or anyone else use an EPF calculator easily:

EPF Calculator: What You Need to Input

Basic Monthly Salary
Dearness Allowance (DA) or other EPF eligible allowances
Current EPF balance (if any)
Age now & retirement age (usually 58 years)
Contribution percentages (usually 12% from employee and 12% from employer)

How Contributions Work

Employee contribution = 12% of (Basic + DA)
Employer contribution = 12% of (Basic + DA)
- Out of employer’s 12%, 8.33% goes to Employee Pension Scheme (EPS)
- Remaining 3.67% goes to Provident Fund

What the Calculator Estimates:

Total employee contribution + employer PF contribution over the years
Interest accrued on the total balance (using the current EPF interest rate, around 8.15% p.a. as of FY 2024)
Total corpus available at retirement age

Sample formula for yearly contribution:

Employee annual contribution = 12% × 12 × (Basic + DA)
Employer annual PF contribution = 3.67% × 12 × (Basic + DA)
Employer annual EPS contribution = 8.33% × 12 × (Basic + DA) (not included in PF corpus, pension benefit instead)