Calculating your PF is an important part of managing your finances as a salaried employee. Many PF calculator tools are available online. The primary information that is required for a PF calculator tool is salary, dearness allowance and the current interest rate for PF. These values keep changing. Thus even though the exact amount cannot be calculated an approximated calculation can be done. To calculate your PF, some basic information should be known beforehand. They include the current interest rate, the contribution of the employee and the contribution of the employer.
Under Provident Fund, it is also essential to keep track of the Employee’s Provident Fund account balance. Comparison of that balance can be made with the PF calculator to know the estimated amount you will receive during retirement. The balance calculation can be done through EPFO portal, EPFO mobile application, UAN portal, SMS services and missed call method. Maintaining your PF funds through regular calculations are essential so that you can keep a record of your financial assets.
Provident Fund Calculator: Information Required
The investment in the provident fund account is done by deducting a part of the basic salary of an employee. Along with that the employers also directs some part of the basic employee salary to the provident fund account monthly. Then the PF interest rates are applied as per guidelines provided by the government. Tax and Dearness Allowance also play a role in PF calculation. So to summarize, here is the complete information required for the PF calculator to give you an estimate of the funds you will be receiving.
- Employee’s contribution to PF
- Employer’s contribution to PF
- Employer’s contribution to Pension Fund.
- Interest rate for the current financial year.
Calculation Of EPF Online
To calculate your EPF amount on maturity, all you need to do is search for any PF calculator online. Then you need to calculate the basic data and enter it into the PF online calculator. The data will be regarding the PF contributions and interest rates. So here is the information that you should know:
- As a salaried employee, you are contributing 12% of your salary. Your salary includes the sum of your basic pay, dearness allowances plus other uniform allowances.
- Your employer will contribute 12% of your salary to the EPF account. Thus the employee and employer contribution is same.
- Your employer’s contribution is divided in the following manner: 3.67% goes directly to the EPF account as Provident Fund, and 8.33% goes to the Employee Pension Scheme as pension funds.
- You need to know the interest rates for the current financial year.
Also when calculating the PF, you must remember that contribution towards an EPF account is liable to tax deductions under Section 80C of the Income Tax Act. So, though the employee contribution towards PF is taxable, tax deductions can be claimed and applied.
PF Funds Calculator: Some Key Points
There are certain key points to be kept in mind whereas Provident Fund is concerned.
- The post fiscal year 2014, all the salaried employees with a monthly salary less than 15,000 INR have to contribute towards EPF mandatorily.
- The minimum monthly pension is 1000 INR.
- Withdrawing funds from PF account before completion of 5 years is liable to taxation. Thus if a PF account is closed before 5 years, you cannot avail the set tax exemption under Section 80C. In that case, the information needs to be provided to the PF Calculator to get your estimated amount.
- Post the completion of 5 years; PF is completely exempt from taxes.
- PF Calculator is a helpful tool to know about your financial accounts. It will help you keep a record of the amount of contributions and deductions.
- The passbook that is generated for EPF funds recording is also an important document that will help you gain a better knowledge of PF calculations. Thus doing a thorough study of your EPF UAN Passbook is also required to understand exactly how all the calculations are done.
- In case you are leaving one job and moving to the next, you do not need to close your previous PF account that was linked to the ex-employer. This is because there is an easy provision of funds transfer between previous and new PF account available online.
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