Employee Provident Fund (EPF) is one of the main platforms of compulsory savings in India for nearly all people working in Government, Public or Private sector Organizations. This calculator is used to calculate total amount accumulated in EPF based on 12% Employee’s contribution and 12% of Basic Pay and Dearness Allowance -Rs 541 as Employer contribution. It is based on following assumptions:
An employee starts with a salary of Rs. 20,000 with Basic salary and Dearness Allowance of Rs 7500 at 25 years and works till 60 years. Every year, on an average, he gets a 5% increment. He contributes 12% of his basic salary towards PF which is matched equally by one’s company, EPF contribution is 12% – 541 , . Over the course of 35 years of his working life, his total contribution is Rs. 9,75,459.32. Of course, his company makes a contribution of Rs. 7,48,239.32, total contribution of Rs 17,23,698.64. And this amount grows into – Rs. 65,86,528.751 at the time of his retirement!
To know more about EPF, different methods in which EPF can be calculated you may read our Basics of Employee Provident Fund: EPF, EPS, EDLIS
It uses Zoho Sheet which is like Excel. It may take a little time to load so be little patient. You can play around with the numbers just like in excel using Options on the top-right corner of sheet.
This is dedicated to our Reader Jai Kumar. Thanks Jai.
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8 responses to “EPF Calculator – Method II”
Thanks for this , very friendly. Not sure, if opening balance is taken in consideration
I am earning 10000 pm as basic salary and 8 years with my company. Please suggest my EPS and this can release to me at my resignation.
I worked for IDBI bank for 2 yrs. I used to get 17ooo per month. The hotel much provident fund will I get
One doubt. How is the interest handled in the fy 2010-11 where in the interest is till 14th of September?
A good question Sudheer. The news you are referring to is Ministry approves 9.5% interest on PF deposits
The interest rate was raised to 9.5 per cent for 2010-11. Though declared in middle of year(Sep) it was effective for full year,
Interest as declared by Central Govt. is paid on the amount standing to the credit of an employee as on 1st April every year.
So in calculation you need to use 9.5%.
please provide my PF calculation
individual employee salary Rs. 10000 for 5 days loss of pay how to PF calculation
MohanRaj you threw usa bouncer. We are not sure but this is what we found (we are verifying it) From Simple Tax India: Salary for the purpose of PF calculation
If your organization calculates PF as 12% of Basic head of pay, please follow the below-steps in order to change the basis of PF calculation.
1. Define salary for the purpose of PF calculation.
Please examine the heads of pay in the pay structure used in your organization and determine (as per the PF Act) what all heads of pay should be considered and left out for the purpose of PF calculation. Let us call the total of amounts under all the heads of pay considered for PF calculation as “PF Gross.”
2. Calculate PF each month as per the following logic.
If 12% of Basic head of pay is greater than Rs 780, then PF contribution = 12% of Basic head of pay, else PF contribution = 12% of PF Gross.
For example, let us assume that an employee receives Rs 10,000 per month under the Basic head of pay. Since his PF is Rs 1,200 (12% of Rs 10,000), which is well above Rs 780, the PF contribution can continue to be calculated as 12% of Basic.
In case the employee receives Rs 3,000 under Basic and Rs 3,000 under “Special Allowance,” a head of pay which should be in PF Gross, the PF contribution cannot be calculated as 12% of Rs 3,000 but should be calculated as 12% of Rs 6,000, which is Rs 720.
Please note that even if you are calculating PF only on restricted Basic (Rs 6,500) instead of full Basic (the actual Basic amount), the PF calculation should be on PF Gross instead of Basic head of pay in case PF contribution falls below Rs 780.
3. PF calculation in the first, last month of service and in case of loss of pay.
Even if Basic is above Rs 6,500, if an employee does not work the whole month in his first or last month of service or has loss of pay, his Basic could fall below Rs 6,500 in a month. In such as month, PF should be calculated on PF Gross instead of just Basic.
For example, let us assume that an employee receives Rs 10,000 per month under the Basic head of pay and Rs 10,000 under Special Allowance. He joins the company in the middle of a month and works only for 15 days (in a 30-day month). The Basic for the month shall be Rs 5,000 while his PF Gross is Rs 10,000. Please calculate PF on PF Gross instead of just Basic head of pay for the first month. The basis of PF calculation should be PF Gross whenever Basic falls below Rs 6,500 in a month.
Another example Of Calculation of PF on loss of pay in detail can be found at TIBS
If the employee has 15 days loss of pay for April, the company calculates the loss of pay to be Rs. 5,000 for April, shows this as a deduction, and calculates the net pay as follows.
Earning
Basic Salary : Rs. 10,000
Deduction
Provident Fund : Rs. 1,200
Loss of Pay Deduction : Rs. 5,000
Net Pay : Rs. 3,800
The above method is wrong since PF is calculated on “fixed” Basic instead of “earned” Basic for the month. Instead of presenting the loss of pay amount as a deduction, the company should reduce the pay to arrive at the net pay. For the above example, the net pay should be calculated as follows.
Earning
Basic Salary : Rs. 5,000
Deduction
Provident Fund : Rs. 600
Net Pay : Rs. 4,400
In the above example, the company ends up paying a lower net salary — Rs. 3,800 instead of Rs. 4,400 for the month — on account of incorrect loss of pay calculation.