The Employee Provident Fund (EPF) is a retirement benefit scheme that is provided by the Employee Provident Fund Organisation (EPFO). Both the employer and the employee each make a monthly contribution to the Provident Fund. You can quickly calculate the retirement benefits with our Kuvera EPF calculator.
The Employee Provident Fund is a popular retirement savings scheme established by the Government of India and regulated by the Ministry of Labour and Employment. EPF is managed by the Employee Provident Fund Organisation (EPFO). The Employees' Provident Fund (EPF) is a welfare scheme enacted to provide a better future for employees. The scheme intends to help employees accumulate a sufficient retirement corpus during their employment years. It also helps create a habit of saving and financial discipline.
Throughout the tenure of employment, both employer and employee contribute to the scheme. Once the employee retires, they get the total contribution (including employee and employer contributions) with interest.
According to existing rules, any organisation with 20 or more employees is required to register with the Employee Provident Fund Organisation (EPFO) and provide EPF benefits to its employees. According to EPF regulations, employees earning less than Rs 15,000 per month (basic + dearness allowance) would be required to become EPF members. It is mandatory for their employers to open an EPF account. An employee who earns more than Rs 15,000 per month at the time of joining is called a non-eligible employee, and it is not mandatory to join EPF.
The Employees's Provident Fund (EPF) calculator will help you calculate the retirement funds you will accumulate.
To calculate the retirement corpus, you must enter a few details, such as:
Firstly, enter your current age.
Then, enter your basic monthly salary along with your expected average annual increase in basic salary.
Submit details regarding the employee'ss and employer'ss contributions.
Lastly, enter the current interest rate.
The calculator will automatically compute the total PF investment and maturity value based on the most recent interest rate once all the details have been filled in.
Kuvera's EPF online calculator shows the total sum in one'ss EPF account at the time of retirement. You gain an understanding of the retirement corpus, which might enable you to manage your other investments in a better way.
The Kuvera EPF Calculator is simple to use and calculates your retirement EPF corpus immediately.
You may plan for retirement with the help of the Kuvera EPF Calculator. You can plan your finances for early retirement by getting an idea of the EPF corpus at various retirement periods.
The contribution from the employer is 12% of the basic salary, in addition to dearness and house rent allowances. The employee also makes an equivalent contribution.
As for the employer's 12% share, about 3.67% goes toward the EPF, while the remaining 8.33% will go towards the Employee Pension Scheme. The balance will remain in the EPF account upon retirement. During the employment period, an employee will receive their contribution in addition to the balance of the employer's portion held in the EPF account.
For cases where an employee earns more than Rs 15,000 (including Basic and Dearness Allowance), the employer can limit their contribution at 12% of Rs 15,000 only.
Kuvera's EPF Interest Calculator below helps calculate the amount accrued in an EPF account.
For example, let us assume Employee A's basic salary + Dearness Allowance to be Rs. 10,000.
Employee A's contribution towards the EPF = 12% * 10,000 = Rs. 1200
Employer's contribution towards the EPF = 3.67% * 10,000 = Rs. 367
Employer's contribution towards the EPS = 8.33% * 10,000 = Rs. 833
The total contribution made by both employer and employee towards A's EPF account will be 1200 + 367 =1567.
If A joins the firm in April 2022, total EPF contribution will be Rs. 1,567, but he will not incur any interest for April.
However, for May 2022, his EPF balance will be Rs. 3334 (Rs. 1,567 + Rs. 1,567). In this way, A will continue to incur interest on his savings for all subsequent months he remains under employment with the firm.
An employee's contribution is 12% of the salary, including the basic salary, dearness, and retention allowances. House rent allowance, overtime, rewards, and commissions are not included.
If an EPF account remains inactive for three consecutive years, the sum will no longer attract any PF interest rate.
Any contribution made by the employee towards the EPF Fund is tax-deductible under section 80 C of the Income Tax Act..
The majority of funds accumulated in an employee's EPF account cannot be withdrawn once and for all by an employee who quits and wants to withdraw them all at once. The provision for partial EPF withdrawal is possible under certain situations like joblessness, retirement problems, loan repayment, medical reasons, etc.
It is a statutory benefit that employees can take advantage of after retiring or after leaving employment. In the event of an employee's death, his or her dependents will be eligible for benefits
The best way to check and track your EPF balance is through Kuvera. Kuvera makes it very easy to keep track of your EPF balance. Here’s what you need to do:
Download the app and sign up on Kuvera.
Click on "Track external investment"
Select EPF from the list
Enter your active Universal Account Number (UAN) and password.
Your EPF balance will get updated in some time. What's more, Kuvera automatically updates this balance, so you can check your latest EPF balance anytime. You can use Kuvera to track all your investments, including Mutual funds, Indian stocks, US stocks and Gold, in addition to EPF.
All employees registered with the EPF scheme are provided with a Universal Account Number (UAN). The UAN must be kept safe and secure as it is a permanent number that does not change even if an employee changes from one company to another. The UAN is crucial to the EPF scheme as it is the only key that can enable access to tasks such as checking the balance and making withdrawals. The UAN is also needed when an employee applies for an EPF loan.
EPFO Online Portal
An employee can check the PF balance by visiting the official website at www.epfindia.gov.in.
Firstly, log in to the EPFO online portal and visit the "Our Services" tab.
Select the "For Employees" option.
Click on the "Member Passbook" option to get redirected to the Sign In page.
Note: EPFO members can download their EPF passbooks with a functional UAN.
The government introduced this application to allow individuals to have access to different projects and services under a single portal. EPFO subscribers can check their PF balance by downloading the Umang application onto their mobiles. They can view their EPF passbook and raise and track EPF claims.
An EPFO member can check their PF balance by sending an SMS to 7738299899 and writing "EPFOHO UAN ENG".
The last three letters indicate the member's preferred language of communication, such as ENG - English, HIN - Hindi, etc.
The SMS should be sent from the mobile number registered with the UAN.
Missed Call Service
A member can use the EPFO missed call service and give a missed call to 011-22901406 from the registered mobile number. All PF details will be made available almost immediately on the enrolled mobile number.
Now that we know how to check the EPF balance, listed below are certain options that are available :
The lump-sum instalment under the EPF Scheme can only be withdrawn upon retirement. However, partial withdrawals can be made for reasons discussed in the above paragraphs.
The EPF must be transferred when changing jobs. A printed copy of Form 13 has to be submitted in advance to the employer along with the Scheme Certificate. It was troublesome as approval had to be taken from the previous employer. The entire process has been made online now.
Sign in to the EPFO portal
Go to "Online Services" and look for "One Member - One EPF Account (Transfer Request)."
Enter login details
Click on "Request for Transfer of Funds" and enter your old employment details as directed. Fill in the previous employer's details as well.
Get it authenticated by your previous or new employer
Click "Get OTP," which will be sent to the number enlisted under the UAN. Enter the OTP and click "submit".
Loan against EPF: An EPF account holder can take a loan against their PF balance
Emergency Corpus: The EPF scheme aids in overcoming unexpected situations such as those involving health, finances, or other factors. This will enable him or her to utilize the corpus when these uncertainties in life arise.
Life Insurance: You also get life insurance covered under the EPF.
Home loan and repayment: The PF can be utilised for home loan repayment.
Partial withdrawal: Subject to certain conditions, should there arise a need for a medical or financial crisis, EPFO permits partial withdrawal.
Tax benefits: Any contribution made by the employee towards the EPF Fund is tax-deductible under section 80 C of the Income Tax Act, 1961.
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The current rate interest for the Financial Year 2021-22 is 8.10% (as on 18 July 2022)
The Employee's Provident Fund is a retirement benefit plan explicitly for salaried people. Both the employer and employee contribute to this scheme. Any Indian citizen can invest in PPF, whereas the EPF is available only for salaried employees.
Kuvera’s EPF calculator is an easy way to estimate your EPF corpus amount at retirement within seconds.
It is required to pass on the remaining sum to a nominee(s) if a member dies. If the deceased had a family, they must designate at least one individual. It is a statutory benefit that employees can take advantage of after retiring or after leaving employment. In the event of an employee's death, his or her dependents will be eligible for benefits.
Yes, the contribution in EPF is tax exempt.
Yes, EPF is a mandatory contribution , PPF on the other hand is a voluntary contribution.
The retirement age under EPF is 58 years.