Provident Fund Calculation: Can Someone Explain How Much I'll Get After 20 Years?

Provident Fund Calculation Example

Please guide me through an example of how Provident Fund (P.F.) is calculated. Suppose I worked with ABC for 20 years and my basic salary is $10,000. How much money will I get after 20 years?

Regards

Dear All,

I understand the intention behind the question, but the question is incorrect, and hence no concrete answers can be provided. The chances of an employee working for 20 years with the same basic salary are very slim.

However, in general, this is the basis of PF calculation: 12% of the Basic (plus DA if applicable) + 3.67% of the Basic (plus DA if applicable) multiplied by the number of years multiplied by 8.5% interest rate per annum gives you the PF amount. Please note that the interest rates are also not constant for 20 years and are decided by the bill passed in Parliament.

Regards,
sree

Your question really made me laugh. Please collect your Form 23 annual slips from your HR. If they have not been submitted, file a complaint with your regional commissioner; this is the best course of action. Alternatively, the next step is to gather all 3A forms from the past 20 years and calculate the interest amount. Currently, the interest rate is 8.5%; previously, it was 9.5% and 11%. The choice is yours.

Regards,
Ramnath

Dear colleague, please add up all the amounts of PF deducted from your pay slip since the past 20 years. The total should include both your contribution and your employer's contribution. This total amount will then accrue interest from the government. Every month, 12% of your actual salary is deducted as PF.

Thank you.

I have a similar doubt. The pension contribution limit is 6500, so the maximum will be 541 Rs if the pension basis is 6500. Now, in the case of two employees, X joined on 1st Dec and Y joined on 15 Dec. The basic (on which PF is deducted) is 20000. For X, the PF is 2400, and for Y, it will be 1200 on a proration basis.

Now, my question is: Will the pension contribution be 541 for both of them, or as Y joined in the middle, will it be prorated for 15 days and come down to, let's say, 270 Rs, and the remaining 241 will get added to PF? Simply put, should the 8.33% pension contribution be prorated according to the number of working days?

Regards,
Nalla