Basic Monthly Salary
Average annual Increment
Current Rate of Interest
The EPF (Employees’ Provident Fund) calculator or PF calculator is used to calculate the projected accumulated amount in your EPF account when you retire. The calculation takes the contributions made by you and your employer during your earning years, as well as the interest.
Navi’s PF calculator supports easy computation of PF amount. All you have to do is enter your current age, basic monthly salary and dearness allowance, EPF contribution, and retirement age. The online calculator will display the accumulated amount in a few seconds.
To calculate PF manually, you need to take a sum of 12% of your basic salary and dearness allowance. However, to avoid errors and save time, you can use an online calculator. Navi’s PF calculator helps you calculate the PF amount in seconds. This online calculator is extremely simple and easy to use.
Here’s how you can calculate your PF amount:
Your provident fund is calculated based on the following details:
Employee’s contribution towards EPF = 12% of (Basic pay + Dearness allowance)
Employer’s contribution towards EPF = 12% of (Basic pay + Dearness allowance)
The 12% Employer contribution will be divided into 2 parts, i.e., 8.33% will be allocated towards the Employee’s pension scheme and the rest 3.67% goes towards the Provident fund.
Each month, the calculation is performed on the opening balance. As the opening balance for the first month is zero, the interest earned is also zero. The interest for the second month is calculated on the first month’s closing balance, which is also the second month’s opening balance. This calculation is repeated for subsequent months.
Employees’ basic pay plus dearness allowance= ₹15,000
Employee EPF contribution = 12% x ₹15,000 = ₹1,800
Employer EPF contribution = 3.67% x ₹15,000 = ₹550.50
Employer contribution to EPS = 8.33 % x ₹15,000 = ₹1,249.50
The total contribution by the employer and employee to the employee’s EPF account is ₹1,800 + ₹550.5 = ₹2,350.5
For the fiscal year 2022-23, the interest rate is 8.1%. So, the monthly interest rate is:
8.1 %/ 12= 0.675%
If an individual joined company X in April 2022. The total EPF contribution for April will be ₹2,350.5. The interest will not be applicable for April. The total EPF contribution for the month of May = ₹4,701 (₹2,350.5+ ₹2,350.5). They receive an interest of ₹4,701 x 0.675% = ₹3,173.17 for each subsequent month. The calculation is repeated till the retirement date.
The EPF is advantageous for a variety of reasons: