EPF Pension Calculator
How do you know how much pension you’ll receive from your EPF savings?If you’re a private employee,That’s where an EPF pension calculator for Private Employees comes in.
You may have heard of the Employee Provident Fund (EPF), a retirement savings scheme managed by the Employees’ Provident Fund Organisation (EPFO) of India. The EPF is a mandatory contribution that both you and your employer make towards your retirement savings, and it can be a valuable source of income during your golden years.
What is EPF Pension Calculator?
EPF Pension Calculator is a tool that allows you to estimate your pension from your EPF savings based on your average monthly salary and length of service. It calculates the amount of the pension using a formula based on a percentage of pensionable salary and years of service.
How Does an EPF Pension Calculator Excel Work?
An EPF pension calculator excel uses the following formula to calculate your pension amount:
Pension amount = (pensionable salary * years of service) / 70
Here, pensionable salary is your average monthly salary of the last 12 months, and years of service is the number of years you have contributed to the EPF scheme. The factor of 70 is used to calculate the pensionable salary as a percentage of your total salary.
Once you enter your average monthly salary and years of service into the calculator, it will use this formula to estimate your pension amount.
Here’s an example of how to calculate the EPF pension using the formula we discussed earlier:
Let’s say you have worked for a company for 20 years and your average monthly salary of the last 12 months is Rs. 50,000. To calculate your EPF pension, you would use the following formula:
Pension amount = (pensionable salary * years of service) / 70
In this case, your pensionable salary would be 70% of your average monthly salary of Rs. 50,000, which is Rs. 35,000.
So, plugging in the values, we get:
Pension amount = (35,000 * 20) / 70 = Rs. 10,000
Therefore, based on the inputs you’ve given, you can expect to receive a pension of Rs. 10,000 per month from your EPF savings.
How to Use an EPF Pension Calculator for Private Employees?
Using an EPF pension calculator is easy. Simply follow these steps:
- Go to an EPF pension calculator website or use an offline calculator.
- Enter your average monthly salary of the last 12 months.
- Enter the number of years you have contributed to the EPF scheme.
- Click on the “Calculate Pension” button.
- The calculator will display an estimated pension amount based on the inputs you have entered.
Conclusion:
An EPF pension calculator for private employees is a valuable tool for private employees who want to plan for their retirement and estimate their pension amount from their EPF savings. By using an EPF pension calculator, you can make informed decisions about your retirement savings and investments, and ensure that you have enough income to live comfortably during your golden years.
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