PF Interest Calculator Online check your present PF interest rate and PF amount.
PF means a contribution of both an employer and employee make toward future benefits of employee and added financial advantage to an employee and his/her family. It has been made to safeguard peoples retirement period so that they can live comfortably and stress free.
In this an employee is required to make 12% of monthly salary contribution to fund. It is necessary for every organization that has hired more than 20 employees to register in this practice.
It is found under provident fund and provisions act, 1952 and is managed and handled by provident fund institute. It is a statutory body of government of India.
This is one of best investment tools an employee can decide to undertake. Both private and public sector workers have to be in exercise. It allows you as an employer and employee to save up money which will be earning a compound interest yearly and will be given to you under tax free.
Definition of a PF Interest rate calculator
PF calculator is a tool provided online allowing a person to calculate EPF interest on your account. central government acts like a bank gives you added interest on you saved up amount. This tool can be simply defined as an investment tool that assists you in investment assessment in provident fund system.
PF calculator will not only helps you in knowing your earned interest but also give an estimate balance of your account when you retire. Therefore, you are able to know amount of money you receive in future.
There are several key information you are required to give in calculator. An employee should give out following details so as to know provident fund interest.
- current employees age
- EPF balance (information should be based on current details)
- Monthly basic salary
- Dearness allowances(monthly)
- Expected salary raise
- Monthly percentage contribution to fund.
Once you have entered information onto calculator, it will give you total amount of interest you are expected to receive at retirement time. EPF calculations have been made much easier by use of calculator.
PF interest rate on provident fund
Before calculating interest rate, an employee should have knowledge of below issues
- central government allows to give out rate of EPF interest. interest notice is obtained at official EPFO website and each financial year has its stated interest.
- Based on employee’s average monthly balance, EPF is then calculated. provident fund contributors have to obtain interest on their contribution and even employers contribution to same course.
- Although interest is to be calculated monthly, total amount of earned interest is to be credited yearly
- Credit payout is to be handled at month of March towards end.
- Accounting year is to commence in February.