In case of salaried employees in India, a certain portion of their salaries gets deducted towards their EPF account. Over time, the money in the EPF accounts turns into substantial savings, along with the interest it earns. For FY 2024, the government has notified 8.25% rate of interest for provident fund (PF) contributions. To know the exact amount of savings in your PF account, you can use the PF calculator.
What is a PF calculator?
A PF calculator is a tool that helps you arrive at the exact amount of savings in your PF account over a certain period. It factors in your and your employer’s contribution to the PF account along with the interest offered by the EPFO to calculate the final amount.
See also: How to check and download EPF Member Passbook
Inputs required to use PF calculator
You can use the PF calculator by providing your age, basic salary, your contribution to the EPF scheme, interest earned on PF balance as announced by the EPFO every year and other required details.
PF calculator: How it works?
Suppose you are 30 years old. Your basic salary plus dearness allowance is Rs 50,000. Your contribution to EPF accounts is 12% of your salary while your employer offers 3.67% of your salary as his contribution. The EPFO is offering an interest rate of 8.1%. In this scenario, the post-retirement money at age 55, in your PF account, would work out to approximately Rs 82.5 lakhs.
See also:Guide to using an income tax calculator
Reliable PF calculators
Various fintech companies provide online PF calculators that can provide a broad figure of the accumulated amount in your PF account. However, the numbers obtained are only indicative of the PF savings and not absolute.
See also: NPS calculator: Know how to calculate your National Pension Scheme money
Benefits of EPF calculator
- You will have a broad idea about the savings in your PF account at the time of retirement.
- You will have some perspective about your post-retirement life.
- You can think about other investment options to increase your post-retirement fund.
- You will get a direction to plan your retirement and your working life.
See also: PF login
An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
sunita.mishra@proptiger.com
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