How is employee provident fund percentage calculated?


How is gratuity calculated?

The formula is: (15 * Your last drawn salary * the working tenure) / 30. For example, you have a basic salary of Rs 30,000. You have rendered continuous service of 7 years and the employer is not covered under the Gratuity Act. Gratuity Amount = (15 * 30,000 * 7) / 30 = Rs 1,05,000.

Is PF part of 80C?

An employee’s contribution to the Employee Provident Fund (EPF) account also earns a tax break under Section 80C of up to Rs 1.5 lakh. This amounts to 12% of salary that is deducted by an employer and deposited in the EPF or other recognised provident funds.

How is basic salary calculated?

What Is Basic Salary? Definition, Formula & Income Tax

What is PF policy?

According to the EPF rules, 12 percent of your salary must go towards your provident fund. Your company is also required to contribute the same 12 percent, out of which 8.33 percent of the salary is directed towards the Employee Pension Scheme or EPS. The remaining 3.67 percent are put into your EPF.

What is the PF rate?

EPF Contribution

How is EPF maturity amount calculated?

Firstly, enter your age on Scripbox’s EPF Calculator. Next, enter your desired age of retirement, basic salary and expected annual increase in salary. Then enter your contribution and employer’s contribution to the Provident Fund. Finally enter the current interest rate.

How is private employee pension calculated?

Earlier, EPFO was providing pension calculated on the salary of the employee with a maximum cap at Rs. 15,000. Now that the cap of Rs. 15,000 has been removed, the EPS contributions will be calculated based at 8.33% of the actual salary of the employee.

How is PF pension calculated?

The pension amount that you get from EPF after retirement depends on your pensionable salary and pensionable service. Multiply your annual pensionable salary with the number of years of your pensionable service. Divide the sum by 70, and you will get your EPF pension.

How is Provident Fund calculated in Excel?

Lets say your salary (Basic Salary + Dearness Allowance) = Rs 50,000 per month. Now following are the contributions made by you (employee) and the employer: Employee’s contribution towards EPF = 12% of Rs 50,000 = Rs 6000. Employer’s contribution towards EPS = 8.33% of Rs 50,000 = Rs 4165.

How is employee provident fund percentage calculated?

As per the Act -12% Employer contribution will be divided into 2 parts i.e. 8.33% towards Employees pension scheme and rest 3.67% towards Employee Provident fund. Remaining 8.33% towards Employee pension scheme (EPS) that is 15,000/-x 8.33% = Rs. 1249.5/-.