EPF Calculator

What is Employee's Provident Fund (EPF)?

EPF, commonly known as the Employees Provident Fund, is a retirement savings plan in which both employees and employers contribute to a fund for the employee's future. It was established under the Employees' Provident Funds Act of 1952 and is handled by the Employees Provident Fund Organization (EPFO). Runtime HRMS has provided this free EPF calculator to help you calculate your future retirement savings.

Who needs an EPF account?

• Companies with 20 or more employees are required to register with EPFO and enroll their employees for EPF.
• Smaller businesses with fewer employees may also offer EPF voluntarily.
• EPF is mandated for employees earning less than ₹15,000 per month (base pay + dearness allowance), although most organizations provide it to all employees regardless of compensation.

How Does the EPF Work?

• Employees pay 12% of their basic wage and dearness allowance.
• Employers equal the 12%, allocating 8.33% to the Employee Pension Scheme and 3.67% for the EPF Fund.
• The employee contributes the entire 12% to the EPF.

• With a Universal Account Number (UAN), you can easily transfer your EPF balance when changing jobs.

• You receive a lump amount upon retirement.

• Managed by the Government of India, EPF provides guaranteed returns with annual interest rates determined by EPFO.

• EPF contributions and interest are normally tax-free.
• EPF is a reliable way to save for retirement while working, as both you and your employer contribute to the growth of your assets.

How to check your PF balance online?

1. On the EPF portal's homepage, select 'e-Passbook'.
2. Enter your UAN, password, and captcha, then click 'Sign In'.
3. To proceed, click on the 'Passbook' option.
4. Choose your 'Member ID' from the list provided.
5. Your PF balance will be displayed on screen.

Taking these steps allows you to easily access your Employee Provident Fund information online. Regularly checking your PF balance keeps you informed about your savings.

What is an EPF Calculator?

Runtime HRMS EPF calculator is an online application that allows you to estimate the total amount you will have in your EPF account when you retire. It assesses your and your employer's combined contributions, as well as the interest generated over time.

• Your Monthly Salary (Basic + DA)
• Your estimated annual increment (%) in salary
• Your current age (up to 58 years)
• Your contribution to EPF (12% or more)
• Employer contribution to EPF( 3.67%)
• Annual Interest Rate (Usually 7.5% to 8.5%))

Once you've entered this information, the EPF calculator will display your expected retirement savings considering total interest and total investment value. This is an easy method to organize your finances for the future.

Conclusion

The Employees' Provident Fund (EPF) is an important aspect of ensuring financial stability in retirement. By requiring constant contributions from both employees and employers, EPF helps to create a sizable corpus over time, with the added benefits of guaranteed returns and tax breaks. Tools like the Runtime HRMS EPF calculator help you manage your retirement savings more successfully by providing a precise estimate of your future funds.

To ensure a pleasant and stress-free retirement, manage your EPF account proactively, check your balance on a regular basis and make sound financial decisions.