By entering details like basic salary, dearness allowance, contribution rates, and years of service, users can calculate their total EPF balance, including contributions and interest earned. This tool is crucial for individuals to plan for retirement, make informed financial decisions, and ensure they are on target to achieve their retirement goals.
The EPF is a valuable retirement benefit that employees in the organized sector in India get when they retire. It’s overseen by the EPFO, where both the employer and employee put money into this fund. The government has increased the EPF interest rate to 8.25% for the financial year 2023-24.
How to use ET EPF Calculator?
To arrive at the retirement corpus, you need to enter few details such as:
- Your present age and the age when you wish to retire.
- Your basic monthly salary, your expected average annual increase in basic salary.
- Your (employee’s) contribution to EPF and your employer’s contribution.
- The interest rate earned on the EPF balances as declared by the government each year.
What does the EPF Calculator show?After entering the above information and submitting it, the calculator will show how much you will save by the time you will retire. The statement will read as – “You will have accumulated X amount by the time you retire.”
Facts About EPF contributions That You Must Know
- Your PF contributions aren’t just coming from your paycheck; your employer has to chip in the same amount to your EPF account every month too. It’s also important for employees to link their Aadhaar number and bank account to their UAN.
- You can choose anyone as a nominee for your EPF account, and if something happens to you, that person will receive the account balance. If you want to change your nominee, just fill out Form 2 and hand it over to your company’s finance team or the EPFO office.
- Now, about your employer’s contributions: 8.33% of that monthly amount (up to Rs 1,250) goes into the Employee Pension Scheme (EPS), which means you’ll get a monthly pension when you retire, provided you meet certain conditions.
- If you decide to leave your job and want to take out the money from your EPF account, you can only withdraw a part of it based on specific reasons like unemployment, retirement, buying land, building or renovating a house, getting married, education expenses, paying off a home loan, or medical needs.
- For those who are retired and have worked continuously for the last 10 years, you can take out the full EPS account balance. But if you haven’t been employed continuously for that long, your withdrawal from the EPS account will depend on your previous salary.
- You don’t need to take out your EPF contributions or close your account when you change jobs. Just give your UAN to your new employer. The new PF number they set up will still be linked to your current UAN. To move your PF balance from your old employer to the new one, you’ll need to fill out Form 13. If you want to make the transfer automatically, you can use Form 11 instead.
- You can easily check your EPF account balance, track your transfer requests, see your claim status, request withdrawals, and even file complaints online through the EPFO portal or the UMANG app.
