If you are a salaried employee and are about to retire, you can get Rs 7,200 as pension every month after retirement. Now you must be thinking that after retirement, how will you get a pension of Rs 7,200 every month and how to calculate it, then let us tell you that both public and private sector employees are considered eligible for post-retirement pension. That’s why employees get pension after retirement .

Employees’ Provident Fund (EPF) was created when the Parliament approved the EPF Act. The funds contributed to the Employer and Employee Permanent Account are managed by the EFPO. This is known by a unique account number (UAN number), as per the law. Using the EPF calculator, salaried employees can calculate their savings with accuracy.

Employees are required by law to contribute 12% of their basic monthly salary plus EPF. The employer is then compelled to contribute in like manner. Money is deposited by both the employee and the employer in the Permanent Account identified by UAN or Unique Account Number. EFPO oversees all the employees of India and fully monitors their PF account. With the help of EPF calculator, you can calculate your savings correctly.

Calculate your savings like this

First enter your basic salary and your age.

Then the employer’s contribution (EPS+EPF), total interest received, and total maturity amount will be shown.

How does the EPF calculator work?

Every employee of India contributes 12 per cent of his basic salary and dearness allowance to the EPF account every month. For example the employee’s contribution will be 12% of Rs.60,000 i.e. Rs.7,200. That is, after retirement, you will continue to get Rs 7200 as pension throughout your life.

The post EPFO Pension: How to get a pension of Rs 7,200 every month after retirement, calculate like this first appeared on Rightsofemployees.com.

Being an EPFO ​​subscriber means that you will also have an EPF account. Your employer ie the company would have contributed 12 percent of the salary to the Provident Fund on the basis of the basic salary.

Explain that EPFO ​​manages the accounts of crores of account holders. In these accounts, the basic salary and dearness allowance (DA) of both the employee and the company are deposited in 24 percent (12+12) shares. The government fixes interest every year on the amount deposited in the EPF account. At present, the interest available on this is 8.1 percent.

Generally people do not take EPF money very seriously. But the money that is deducted if you keep it till retirement. If you do not withdraw it, a huge fund can be created. This creates a huge corpus for retirement. Also, the magic of compounding interest is such that you can become a millionaire with an investment of 25 years. According to the rules, if there is retirement at the age of 58, then how much money will be in the EPF account? It is from your salary slip that you can understand how much money you will get?

Retirement fund on basic salary of Rs 10,000

Suppose your basic salary and dearness allowance together is Rs 10,000. If you are 30 years old, then by retirement ie by the age of 58, you will have a retirement fund of Rs 67.32 lakhs ready. The maximum contribution that can be made in the EPF scheme is only up to 58 years.

calculation

• Basic Salary + DA = Rs 10,000
• Present age = 30 years
• Retirement age = 58 years
• Employee monthly contribution = 12%
• Employer monthly contribution = 3.67%
• Interest rate on EPF = 8.1% per annum
• Annual salary growth = 10%
• Maturity Fund at the age of 58 years = Rs 67.32 lakh.

EPF contribution can also be increased

If you feel that your money is not enough for retirement planning, then you can also increase your contribution to the EPF fund. However, for this one will have to talk to the HR of the company. If you want, you can also double your contribution. This will give you the advantage that your fund will also double.

The post EPF Calculator: Basic salary is Rs 10,000, 12% deducted EPF, know how much fund you will get after retirement first appeared on Rightsofemployees.com.