Provident Fund

How Does an Online EPF Calculator Work?

Calculate your liable EPF amount easily with an EPF calculator online. Know more about EPF calculation from the below-mentioned details.

Employees’ Provident Fund or EPF refers to the gross value of a certain amount of money that the employees set aside from their salary.  They receive the total EPF at the end of their service. It also includes specific contributions from the employer’s end, making it a trustworthy financial reserve for retired individuals. There are numerous ways of calculating EPF, primarily based on the employee’s salary range. 

How Does an EPF Calculator Work

The online EPF calculators are easy to use, and the process is also quite simple. You just need to organize your documents with all the necessary information. The EPF calculators use advanced tools that make the process even more accurate. Enter your valid data regarding your EPF deposits monthly, and your work is over. The online tool is highly efficient and can calculate huge estimates quickly. There are certain sections in the EPF calculating tool where you need to provide valid information like contributions of the employers and the employees, monthly interests, and so on. The EPF calculations are done on the basis of age, gross salary, and individual contributions. An EPF calculator will make the process easy for you, with advanced tools for saving your data as well.

Factors to Take Into Account While Calculating EPF Online

Firstly, you must know that there are two broad divisions in EPF calculation. One is where the employee’s contribution is considered, and the other deals with the employer’s payments. The EPF accounts for 12% of the basic pay and Dearness Allowance (DA) in both cases. However, the employer’s gross contribution is 12%; he adds only 3.67% for EPF (and 8.33% for the Employee’s Pension Scheme). Most important is the current interest rate on the contributions made for EPF. As for the current financial year of 2022-23, it is fixed at 8.10%. This is applicable annually, so you need to be very careful while filling in the details. Do not confuse monthly installments with annual interest rates.As you can see from the details mentioned above, computing and storing EPF on a monthly or yearly basis becomes quite tricky on paper. A good EPF calculator will help you calculate the amount correctly and store it for future use. In addition, the EPF calculators come with an in-built excel sheet where you can save and store your EPF returns as and when required. So hurry up and find a good EPF calculator online. Make sure it is trustworthy, and start planning your future after retirement.

Vital Steps to Calculate EPF Returns Online

There are a few simple steps that you need to follow while computing your EPF returns on an online EPF calculator. You just need to fill in some essential details, which helps the process to become accurate and trustworthy. Here are the steps to follow in detail:

  • Fill in your personal details: To compute your EPF returns, you first need to mention your current age and your expected retirement age (a maximum of 58 years).
  • Enter your basic pay (monthly salary) and expected annual increment in that case.
  • You need to mention both the employer’s as well as the employee’s contributions. It is a very tricky area, where you need to be very careful. If you confuse the two, it can lead to a massive alteration in your EPF calculation. For instance, if you put an employee’s contribution wrong, your EPF will not be calculated correctly within the 12% basic pay range.
  • Mention the interest rate on your EPF value. The Government fixes it from time to time. Currently, the interest rate is 8.10%.

It would help if you kept in mind that the employer’s contribution to EPF varies according to your monthly salary.

If the salary is within ₹15,000, the employer’s contribution will be 3.67% of the gross salary. However, if your salary exceeds ₹15,000, the employer’s contribution will be the difference between the employee’s contribution to EPF and the employer’s contribution to EPS.

Benefits of Using an EPF Calculator Online

With the world shifting globally, it is pretty normal that everything is becoming online these days. The Government is also playing a vital role in encouraging digitalisation in the country.

Therefore, there are numerous benefits to calculating your EPF online using a EPF Calculator 2023. It eliminates the unnecessary trouble of going through duplicate values and saves your time and energy. The other obvious benefits of using an EPF calculator online are as follows:

  • You can record your EPF values every month and see what it adds to in a year. It provides an estimate with all essential details in place. Therefore, you don’t need to maintain separate sheets for calculating your EPF and other information as you did on paper.
  • If you get to know about the expected resultant value of your EPF returns, you can work on increasing it if possible. You get a clear idea of how much it can add up to in one year. It can help you improve your interest considerably by seeking a promotion or salary hike.
  • You can also invest in something profitable with your EPF returns. Once you know about the monthly as well as yearly EPF values, you will get an idea of where you can invest. Accordingly, it will add up to your current savings in a big way, especially after your retirement. Keep an eye on major areas of interest regarding investment plans while you compute your annual EPF returns.
  • The estimates will also help you plan out your retirement policies. If you can know about the gross EPF estimates, you can work on increasing them. Gradually, you can also plan your retirement early if you wish to. Moreover, the estimates will point out your areas of improvement, which you can utilise for better efficiency at work.

Conclusion

Get Your EPF Estimates With An Online EPF Calculator. Once you know about the multiple benefits of using an online EPF calculator, you will be intrigued to start working on it. There are ways by which you can save, store and utilise your data as and when needed. No more paperwork is required. It is also a trustworthy system, where your data will remain encrypted. Plan your retirement in an organized manner with an EPF calculator. For further queries, you can consult professionals at Vakilsearch. They will help you bring out the best possible estimated value for your EPF so that you can have a stable future ahead.

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