How to calculate Provident Fund (PF)?

Provident Fund is a great way to accumulate savings for your long-term investment goals. To calculate Provident Fund Balance, you must add the contributions of both the employer and employee. The employer contributes 12% towards the PF balance, whereas the employee contributes 3.67% towards the PF balance.

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The employer’s contribution of 12% towards the PF balance depends on the employee’s basic pay. For employees with basic pay less than Rs. 6500, the calculation of balance is made basis the gross salary. However, if the basic pay exceeds Rs. 6500, the same calculation is made based on basic pay.

If you’re looking to calculate the sum you’ve accumulated in PF, you can consider using the Employee Provident Fund Calculator, which will require the following information:

  • Your present age, and tentative age of retirement

  • Basic monthly salary, along with expected annual increment

  • Your contribution towards the PF, and expected employer contribution.

  • Interest rate earned on EPF balance.

Upon entering these details, you can find out how much you will save, by the time you retire. While these may not be the accurate figures, you may be able to estimate your retirement corpus based on this information.