Pf interest calculation software download

In this post, we will look at the latest PF interest rate and how it has changed over the years. Also, we will discuss the detailed procedure of calculating the PF interest rate. In the previous Financial Year, the PF interest rate was 8. The PF interest rates also keep changing every year. In the graph below, you can see the EPF rate history over the past 6 years.

EPF is one of the safest debt-based savings instruments available in India as it is backed by the government. And it gets a super investor-friendly tax treatment that makes EPF a tax-free investment instrument for the salaried class having the status of EEE, i. Exempt-Exempt-Exempt category of savings products.

This means:. The answer is yes you can. However, the employer is not bound to do a matching contribution. And VPF is a not a separate account. It is only a means of investing additional money in the same EPF account. You can have a look at historical VPF interest rates in India if you want. And since most people keep switching jobs regularly, it is important to understand what happens to their EPF accounts when they leave one job and join another one.

To be honest and being a SEBI-registered Investment Advisor and having worked with many clients , I can tell you that your savings in EPF corpus alone will not be enough for retirement. A good retirement portfolio should have a smart mix of both equity and debt in it.

But since retirement for most young savers is decades away, it is very important to have equity investments as part of your retirement savings plan. So if you are looking to plan your retirement properly and you really should do it because retirement is a big and nasty problem!

If you find it tough to answer questions about retirement like — how much I need to save for retirement, how much retirement corpus is required, how much to invest monthly for retirement , etc.

EPF is one of the few products that have been designed specifically for retirement savings. You need to save more. In case any inconsistencies observed, please click on reach us.

Fixed Deposit. Invest Online. Employee and employer contributions Before you calculate the interest on your EPF account, you must understand how contributions to you EPF account balance are made. Understanding the wage ceiling If your income exceeds Rs.

Your employer may choose to continue to match your contribution even over the wage ceiling. How is the interest on your EPF calculated? The opening balance in your account will be Rs. Step method The interest accrued in the first month is zero, as the opening balance is zero. Assuming the interest rate is 8.

You can also use online calculators like this one to calculate your EPF. Withdrawals from EPF You will be eligible to withdraw the full amount of your EPF only when you reach 58 years of age, or when you have been unemployed for more than two months.