EPF calculator estimates the Employee Provident Fund (EPF) amount available to employees at the time of their retirement and shows year-wise details of contributions of the employee and employer to EPF account and growth in EPF and EPS balance. You are just required to enter the basic details viz. age, retirement age, current balance of EPF and EPS accounts, your and your employer's monthly contributions, estimated salary rise and interest rate.
Employee's Provident Fund (EPF) is a retirement benefit scheme available to all salaried employees. This fund is maintained and overseen by the Employees Provident Fund Organisation of India (EPFO). Any company with over 20 employees is required by law to register with the EPFO. It helps employees save a portion of their salary every month that can be used in the event the employee is rendered unable to work or upon retirement.
The employee and employer both contribute 12% of employee's basic salary (plus dearness allowances, if any) into employee's EPF account. The entire 12% of employee's contribution goes into his EPF account along with 3.67% of employer contribution, while the balance 8.33% from your employer's contribution is credited to EPS (Employee's Pension Scheme). If basic pay plus DA of employee is above ₹ 6,500 per month, the employer can contribute a maximum of 8.33% of 6,500 (i.e. ₹ 541) to employee's EPS and the balance goes into employee's EPF account. The balance in EPF account earns interest at the rate specified by the Government from time to time. However, the balance in EPS account does not earn any interest.
The Employee's contribution to EPF is eligible for deduction under Section 80C of the Income Tax Act. The amount contributed, the interest earned and the amount withdraw after the mandatory specified period (5 years) are exempt from Income Tax. The employer contribution to EPF is also tax-free.