EPF Calculator - Calculate Employee Provident Fund & Interest

EPF (Employee Provident Fund) is a retirement benefit scheme managed by EPFO (Employees' Provident Fund Organisation) for salaried employees in India. Both employees and employers contribute 12% of basic salary plus dearness allowance to the EPF account. The scheme offers attractive interest rates and tax benefits under Section 80C of the Income Tax Act.

EPF interest is calculated monthly on the closing balance of the previous month. The interest rate is declared by the EPFO annually (currently at 8.15% for FY 2023-24). The formula used is: Monthly Interest = (Monthly closing balance × Annual Interest Rate) / 12 Both employee and employer contributions earn the same interest rate, and the interest earned is tax-free.

1. Tax Benefits: Employee contributions qualify for tax deduction under Section 80C 2. Tax-Free Returns: Interest earned and maturity amount are tax-free (conditions apply) 3. Employer Contribution: Equal contribution from employer enhances savings 4. Guaranteed Returns: Interest rate is guaranteed by the government 5. Retirement Security: Forced savings ensure retirement corpus building 6. Loan Facility: Partial withdrawals allowed for specific needs 7. Insurance Coverage: EDLI scheme provides life insurance benefits

1. Employee Contribution: 12% of (Basic Salary + Dearness Allowance) 2. Employer Contribution: 12% (8.33% to EPS if eligible, rest to EPF) 3. Salary Limit: No upper limit for contribution, but tax benefits may vary 4. Interest Calculation: Monthly basis on previous month's closing balance 5. Withdrawal Rules: Complete withdrawal allowed after retirement/2 months of unemployment 6. Universal Account Number (UAN): Mandatory for EPF account operation 7. Online Access: View balance, transfer, and withdraw through unified portal

1. EPF vs NPS: - EPF offers fixed returns while NPS returns are market-linked - NPS offers more investment choices but with market risks - Both have tax benefits and long-term focus 2. EPF vs PPF: - EPF has employer contribution advantage - PPF offers more flexible investment options - Both offer similar tax benefits 3. EPF vs Mutual Funds: - EPF provides guaranteed returns - Mutual funds potentially offer higher returns but with risks - EPF has additional benefits like employer contribution

1. Maintain continuous employment to avoid breaks in contribution 2. Consider VPF (Voluntary Provident Fund) for additional tax-free savings 3. Keep UAN active and linked to all EPF accounts 4. Monitor monthly contributions and annual interest credits 5. Plan withdrawals carefully to maintain corpus growth 6. Understand tax implications of premature withdrawals 7. Keep KYC updated for smooth claim processing