As an employee, knowing about one’s EPF contribution and the interest earned on it is an important information which must not be missed. And what about the EPF pension? How much will be your monthly pension after retirement?
An EPF interest calculator and EPF pension calculator – these are two important online tools using which you can get an estimate of your EPF interest and EPF pension.
But how to use EPF interest calculator and EPF pension calculator? Let’s find out.
EPF Interest & EPF Pension – The Basics
What is EPF – Employee’s Provident Fund scheme under which the enrolled employee contributes 12% (or 10% in some cases) of their basic salary + DA to the EPF account and their employer matches the amount – every month.
What is EPF Interest? – Interest on EPF contribution – Calculated every month but credited on yearly basis.
What is EPF Interest Calculator? – An online tool that calculates the interest earned on one’s EPF contribution. EPF interest rate, monthly basic salary etc. is used in EPF interest calculation.
The current EPF interest rate for FY 2021-22: 8.10%
What is EPS? – Employee’s Pension Scheme under which 8.33% of the employer’s contribution (from 12% of EPF) is directed towards the EPS account. This does not earn interest. Employee does not contribute to EPS. This scheme is under the EPF only.
What is EPS Pension or EPF Pension Calculator? It is a tool provided by the EPFO to get an estimate of superannuation (after 58 years of age) pension or early pension.
How Does an EPF Calculator Work?
An EPF Interest calculator takes into account the following details to calculate the EPF interest:
- age of the employee
- contribution rate (of employer and employee)
- current EPF rate of interest
- current EPF balance (optional), and
- retirement age proposed by the employee.
The rate of interest given by EPFO is per annum, but for calculation, this rate is broken down into 12 parts, i.e. for each month (rate of interest/12) and then the total contribution (12% by employee + 8.33% by employer) for one month is used.
Please Read: How to Calculate EPF Interest in detail?
Reference image by Clear Tax.
How to Use EPF Pension Calculator?
EPFO provides the Pension calculator which is an online tool to estimate your superannuation or early pension. It uses your date of birth, date of joining and date of leaving job/retirement date to calculate the EPF pension.
To use the EPFO pension calculator, follow the steps given below:
Step 1: Go to EPFO Pension Calculator.
Step 2: It will automatically open EDLI calculator. Click on “Pension Calculator” from the menu at the top.
Step 3: Now, enter your date of birth.
Step 4: Click on “Add Service” and enter details.
Step 5: Click on “Show/Update Calculation” to know your estimated EPF pension.
How to use an EPF interest calculator?
Open any EPF calculator online and enter the following information:
- your current age
- basic monthly salary (+DA)
- EPF contribution rate (12% or more if opted for Voluntary Provident Fund)
- Retirement age (up to 58 years)
- Current EPF balance.
As you enter all these details, the calculator will automatically do the work and show the result as the total EPF you’ll get after retirement. This EPF maturity amount will include the accrued EPF interest.
| Read more about EPF: | ||
| EPF Balance Check | EPF Correction Form | EPF Passbook |
| EPF Wages | EPF Interest Rate | EPF Pension |
| EPF Contribution | EPF Online Claim | EPF Premature Withdrawal |
| Read more about UAN: | ||
| UAN | UAN Activation | |
| Read more about EPFO: | ||
| EPFO E-Sewa | EPFO Online Payment | EPFO KYC Online Update |
| EPFO Establishment | EPFO Member Portal | EPFO Registration Process |
| Read more about EPF Forms: | ||
| EPF Form 10C | EPF Form 19 | EPF Withdrawal Form 31 |
EPF & Pension Calculator: FAQs
You need your current age, your PF contribution (%), basic salary + DA and retirement age to use an EPF maturity calculator. Some calculators may ask for some optional inputs as well.
Your employer’s contribution is matched to your contribution. However, only 8.33% of the total contribution goes towards EPF while the remaining portion is directed to fun your EPS account (pension account).
EPF maturity calculator works in the same way as any other EPF calculator. Basic salary, current age, retirement age and PF contribution are used to calculate the EPF maturity amount.
EPF calculator or EPF interest calculator given an estimate of your EPF amount (total contributions + total interest earned) while the EPF pension calculator given an estimate of the monthly pension you’ll receive after retirement or early retirement.
After serving 22 years of service at Army Public School Nasirabad I retired on 03 Aug 2020. My contribution was as per the ceiling limit prescribed by EPF department. I joined EPF wef 01 Jan 1996 till my retirement and being given pension Rs 2522 only. Whereas wef 2014 my EPF has been deducted on Rs 15000/- as per pension formula it is completely wrong. I want to file a court case against EPF department. Please give legal advice.
Hello Mr Sharma,
Sorry that you have had such an unpleasant experience. We advise you to register your complaint at the EPFiGM Grievance Redressal Portal. Here, you will get a Complaint Number/ID that you can use to track the status of your complaint. You must get a response on it within the stipulated time.
If you want to know how to register your complaint, please check this article: How to Register Complaints EPFiGMS
Regards,
Team Investment Simplified