Want to know how you can calculate the EPF savings? If yes, then you will get all the information here!
The majority of the private sector employees today are entitled to get some post-retirement perks. It is provided only if employees work well in the organised sector. You also need to know that government employees are eligible for pensions and are different from their private sector counterparts. The employee Provident fund was applicable after the parliament passed the EPF act.
The Employees Provident fund organisation of India under this law controls the funds deposited by the employer and the employee in the permanent account, also known as the unique account number or UAN. You can get a rough idea of your savings appropriately by using the EPF Calculator India.
Under this blog, you can learn how to calculate your EPF Savings with PF Calculator. The PF calculator uses the perfect technology to help you get the ideal sum whenever you input the information. The Provident fund works like a guarantee for future savings or even employment laws. If you want safe financial decision-making in the future, you can rely on the employee Provident fund.
Reasons to Use The EPF Calculator
You can easily track where your money is going or being stored once you start using the PF calculator. It will also show you how much interest you have earned on your hard-earned money.
Some of the fantastic benefits of using the EPF calculator are as follows
- You do not have to calculate the total contributions manually every time.
- Additionally, the PF calculator works perfectly on all occasions.
- You don’t have to stress the interest rates or any variation in the contribution ratio over time. The EPF calculator will automatically consider all the changes.
- Whenever you use the EPF calculator, you will be informed automatically about any transaction changes or contributions, if there are any. For instance, the current interest rate on the EPF is around 7%. If it changes during any given financial year due to new laws or legislation, whenever you log in, you will be notified.
How Can You Calculate the EPF Amount?
You need to have some data before you start calculating your EPF amount
The data includes the following elements
- The basic monthly salary should also include your dearness allowance.
- You should include the contribution to the EPF.
- Don’t forget to include the employer’s contribution
- If you have your retirement age or any plans for vRS, then you can do that.
- The current EPF balance
- The current interest rate for EPF
How Can You Use the Calculator to Calculate Your EPF?
It is straightforward to use the EPF calculator. You just need to include the values, and the results will be generated instantly.
- Firstly you need to enter your salary package or the basic salary and your age.
- The total interest earned and maturity amount would be reflected in the result once you input the values, which include your employer’s contribution.
Use Vakilsearch`s PF Interest Calculator to decide out how an entire lot coins is probably collected for your EPF account even as you retire.
What Do You Need to Know About the EPF?
The EPF, or the employee Provident fund, is a retirement benefits scheme, mainly useful for employees getting salaries in the private sector. The Employees Provident fund organization regulates the same and any company having more than 20 employees is covered under the scheme.
If you fall under a scheme of EPF, you have to make a contribution of a fixed percentage of around 12% of the salary (Basic), and DA will be invested in this scheme. The EPF interest rate for 2022 is set at 8.1%.
The employee can get a lump sum amount whenever they retire, which will include the employer’s and the employee’s contribution with the interest payment. 12% of the employer contribution does not generally go to the EPF amount. Out of the 12%, 8% goes to the employee pension scheme amount, and the remaining goes to the employee before.
All the employees must draw less than 15,000 as the basic monthly salary to become a scheme member. You cannot exit the scheme once you become a member. The employee can contribute at least 100% maximum of the basic salary to the Provident fund voluntarily. The employer will not generally match the contribution.
What Do You Need to Know About the EPF Calculator?
The EPF calculator is ideally a stimulation that will show the amount of money you would accumulate in the EPF account at your retirement time. You can calculate the lump sum account, which will include the contribution and the employer’s contribution besides the interest accrued on your investment. The EPF calculator features a formula box where you must enter the basic monthly salary, current age, and dearness allowance. The retirement age is around 58 years. You can also join the current balance of your EPF provided you know the figure.
Things You Need to Know About the EPF Contributions
- The EPF contributions are not withdrawn from your salary only. Your employer also contributes to the PPF account equally every month.
- You have to link your Aadhaar number and bank account beside the UAN.
- You can nominate any individual for your EPF account. The nominee has to pay the account balance, provided you pass aware.
- You can change the nominee by submitting form number 2 to your company’s finance department or to the EPF department.
- The employer’s monthly contribution here is around 8.33% which will be redirected to the employee pension scheme. It will help you with a monthly pension once you are retired.
- You can only remove a portion of your amount based on the withdrawal purpose if you decide to leave the job and withdraw the balance from the account. Some of the main reasons include retirement, unemployment, and buying land, or education.
- You can withdraw 100% of the account balance if you are retired and have had continuous employment.
Once you retire, you can get a fixed income. Under the EPF your life insurance is also covered. You can avail your EPS and EPF Registration when you withdraw the EPF. This is all you need to know about EPF savings.
Conclusion
Get in touch with the experts at Vakilsearch to know more about EPF and calculate the savings accordingly.
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