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EPF, or the Employee Provident Fund, is like a savings plan for people who work in private companies. It's a way for employees to save money for when they retire. The organization in charge of managing this fund is called the Employees Provident Fund Organisation (EPFO). If a company has 20 or more employees, it has to be part of the EPFO.
1. The EPF Scheme 1952
2. The Pension Scheme 1995
3. The Insurance Scheme 1976.
People who are part of the EPF scheme have to put aside 12% of their basic salary and dearness allowance every month. Their employer also has to put in the same amount.
The EPFO decides how much interest the EPF savings will earn. The interest rate is set at 8.15% p.a. for FY 2023-24.
When an employee retires, they get a lump sum of money. This includes their contributions, their employer's contributions, and the interest earned.
However, part of the employer's contribution (12%) doesn't go to the EPF account. Instead, 8.33% goes to the Employee Pension Scheme Account, and the remaining 3.67% goes to the employee EPF account.
An EPF calculator is like a tool that helps you figure out how much money you'll have in your EPF savings when you retire. It shows the total amount, including what you and your employer put in, plus the interest it earns over time.
Let's look at an example to understand how the EPF calculator does its job.
Suppose an employee with a monthly salary and dearness allowance totalling Rs 12,000.
The employee puts in 12% of this amount into the EPF.
| Month | Employee Contribution | Employer Contribution | Total Contribution | Interest Earned | Total Amount |
|---|---|---|---|---|---|
| April | Rs 1,440 | Rs 440 | Rs 1,880 | - | Rs 1,880 |
| May | Rs 1,440 | Rs 1,440 | Rs 2,880 | Rs 19.57 | Rs 2,899.57 |
| May | Rs 1,440 | Rs 1,440 | Rs 2,880 | Rs 19.57 | Rs 2,899.57 |
| June | Rs 1,440 | Rs 1,440 | Rs 2,880 | Rs 19.57 | Rs 5,799.14 |
| ... | ... | ... | ... | ... | ... |
This process continues for the following months in a similar way.
Step 1: Slide the age bar and input your monthly salary (including DA- dearness allowance).
Step 2: Pick your ideal retirement age.
Step 3: Include the existing EPF funds if you are aware of the balance.
Step 4: Hit the calculate button and instantly see your estimated EPF corpus at retirement.
1. Informed Decisions: Suvit's EPF Calculator helps you make informed choices by projecting your EPF balance, ensuring your future finances are well-planned.
2. Maximize Savings: Increase your voluntary contribution percentage with Suvit's EPF Calculator to boost your retirement fund even faster if the projected amount seems insufficient.
3. Simple & Clear: Suvit's EPF Calculator is user-friendly, simplifying retirement planning by removing complexity.
4. Early Retirement Ready: Planning to retire early? Suvit's EPF calculator displays the EPF corpus at different retirement ages, enabling you to adjust investments accordingly.
Don't let retirement be a source of anxiety. Take control, plan your financial future with clarity, and step into your golden years with confidence. The EPF Calculator is your key to unlocking a secure and happy retirement.
