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EPF (Employee Provident Fund) Estimation Tool

An Employee Provident Fund is a retirement benefits scheme that is meant for salaried employees. A portion of the salary every month is contributed to the fund [maintained & regulated by the Employees Provident Fund Organization of India (EPFO)]. Employees in government sector enjoy the social security of availing pension post-retirement, whereas EPF forms the counterpart for the private sector. Both employees and their employers make contributions. Investments made by a vast number of employees across India are pooled together and invested in a trust.

Every establishment is required to register themselves under PF if the number of employees in the establishment at any time during the previous year reaches 20 or more. (5 incase of seasonal employers). The purpose of the fund is to provide financial support to individuals above a certain age, i.e. post-retirement or upon the incapacitation of the employee to continue working (temporarily or permanently).

A Gist of Features :
PF is contributed by the Employer and Employee as a percentage of employee's Basic Wages.
Employer is also bound to make equal contributions to match employee's contribution to EPF.
Where the Basic pay is upto 15000 p.m, contribution to PF is mandatory. For pay above the said amount, employee can opt out of the scheme.
Aadhaar number and Bank account to be linked with UAN.

Estimated EPF Calculation
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EPF Details

Year Opening Balance Pay Employee Contribution Employer Contribution Total Contribution Rate of Interest Closing Balance Amount Available for VPF Contribution by Employee
Note: Calculation is shown for a period of 35 years, presuming your contribution interval is for the same duration.

Nomination facility available. (In the case of the account holder’s demise, the account balance will be paid to the nominee.)
Change of nominee by submitting Form-2 to EPFO department.
Any contribution to Provident fund by an Employer is divided into Employer PF and Employees' Pension Scheme.
8.33% of Employer’s contribution (upto Rs.1,250) is redirected to the Employee Pension Scheme (EPS).
However, no interest will be accrued on the contributions made towards EPS account.
There is no mandate to withdraw EPF contributions or close the account when you change your employment. UAN ensures contributions from your new company are still directed to your existing account.
However, ensure to notify your new employer with your UAN.
You can either fill Form 11 to automatically transfer PF contributions to the new account or do it manually by filling Form 13.
You can check your EPF account balance, request for transfer, check claim status, request to withdraw, and raise grievance online using the EPFO portal (https://epfindia.gov.in/)

Break up of EPF Contribution
Monthly contributions are segregated into:
Employees’ Provident Fund Scheme (EPF)
Employees’ Pension Scheme (EPS)
Employees’ Deposit Linked Insurance Scheme (EDLI)
EPF, EPS and EDLIS are calculated on the basis of:
Basic pay
+ Dearness Allowance (DA) (including cash value of any food concession allowed to the employee)
+ Retaining Allowance (RA) if any.
(Retaining Allowance is an allowance payable to an employee of any factory or other establishment during any period in which the establishment is not working, for retaining their services.)

Benefits of EPF
1.It is government backed and guarantees safety of principal and interest earned.
2.When you withdraw EPF(after the age of 60), you can avail both EPS and EPF.
3.It forms a fixed source of income once you retire.
4.It can help you accumulate a significant corpus for your retirement, as the contributions happen every month and throughout your working life, making it suitable for long term financial goals.
5.You also get life insurance cover under EPF
6.Early withdrawal is allowed in case of specific emergencies (discussed later).
7.Nomination facility is available to ensure your family members can avail pension or the corpus in the event of your demise.
8. You can choose to invest more than the percentage mandated by law every month, but into the Volunteer Provident Fund.
9. In terms of tax savings, the contributions are deductible under Section 80C, interest earned is tax free and maturity proceeds are also tax free, provided contributions to the fund have been for more than 5 years of service.
10. Allows transferability of account without having to withdraw balance or open a new account(by linking through UAN.)