EPF Calculations: Know how on Rs 21,000 basic salary you can make more than Rs 2 crore corpus at retirement
EPF UAN: EPFO assigns each member a 12-digit number known as the UAN (universal account number). Even if an employee changes employers, his or her UAN remains the same.
EPF or employee provident fund is a popular savings scheme in which employees and employers contribute 12 per cent of the employee's basic salary and dearness allowance. The interest earned on EPF is tax-free. EPF is managed by EPFO (employees' provident fund organisation). It is a non-constitutional body that encourages employees to save funds for retirement.
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Benefits of EPF
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Employees can take advances or make withdrawals.
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The EPF balance of a deceased member is payable to the nominees or legal heirs.
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The company not only contributes to the PF but also makes the appropriate contributions to the employee's pension, which the employee can utilise after retirement.
Employees can take advances or make withdrawals.
The EPF balance of a deceased member is payable to the nominees or legal heirs.
The company not only contributes to the PF but also makes the appropriate contributions to the employee's pension, which the employee can utilise after retirement.
Other benefits of EPF
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EEE (Exempt, Exempt, Exempt) tax benefit under the Income Tax Act enables tax-free returns for the employees.
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The PF account is transferrable.
EEE (Exempt, Exempt, Exempt) tax benefit under the Income Tax Act enables tax-free returns for the employees.
The PF account is transferrable.
EPF: Current interest rate
Currently, EPF provides 8.25 per cent interest rate.
How to access EPF services
You can access the online portal of EPF India from anywhere in the world.
Schemes Offered Under EPFO
Employees Provident Funds Scheme 1952 (EPF)
Employees' Pension Scheme 1995 (EPS)
Employees' Deposit Linked Insurance Scheme 1976 (EDLI)
What is UAN?
EPFO assigns each member a 12-digit number known as the UAN (universal account number). Even if an employee changes employers, his or her UAN remains the same.
How is interest in EPF calculated?
The monthly interest on EPF programs is computed by dividing the annual rate by 12.
When can you withdraw PF?
Marriage purpose
Education
For specially-abled individuals
In case of unemployment
Medical emergencies
Home renovation etc.
Documents required for PF withdrawal
UAN (Universal Account Number)
Identity and address proof
Bank account details of the EPF subscriber
Cancelled cheque with IFSC code and account number
Know how a Rs 21,000 salary can give you over Rs 2 crore corpus at retirement
If your monthly salary is Rs 21,000 per month and you start investing at 22 years of age then you can accumulate a fund of Rs 2,01,35,630 at retirement.
Know Calculations of accumulating more than Rs 2 crore fund
On a yearly hike of 5 per cent in salary, you can invest Rs 45,05,546 starting at 22 till retirement. On this, you will get an interest of Rs 1,56,30,084 at an 8.25 per cent annual rate. The total maturity amount will be Rs 2,01,35,630.