Created a PF Calculation Sheet but Need Help with Interest Accumulation – Can You Assist?

Hi all, I have created a PF calculation sheet. I don't know much about Excel, but I managed to put it together. You can enhance it for your benefit. The sheet includes example calculations. You only need to adjust the Basic amount; the rest of the calculations will update automatically. You may need to modify the Rate of Interest and the Months worked in the company.

Scenario Explanation

In this scenario, I assumed the employee joined the company in September 2008 and left in mid-August 2010. However, the PF claim and settlement occurred in September 2011. Therefore, the PF calculation concludes in August 2011. I am uncertain if interest continues to accumulate after leaving the company. If anyone knows when interest accumulation stops, please confirm.

In 2010, the interest rate was 9.5%. I adjusted the corresponding column to 9.5% after March 2010, as the financial year concludes in March.

You might also need to alter the VPF percentage for different months. If you find any errors in the PF calculation sheet, please provide your feedback. If you require further clarification, feel free to ask.

Regards,

Hi Mosikud, is this PF sheet for PPF or EPF?

If for PPF

Nice calculation sheet. Kindly let me know why you have used the number 541 in your formula.

If for EPF

You have mentioned a basic salary of 15,000/-, but the contribution should not exceed 6,500/-. (While your basic salary may be 15,000/-, the PF contribution is calculated on a maximum of 6,500/-)

Thank you!

Employer Contribution to EPF

This is for EPF. I have no idea about PPF.

The rule for Employer contribution is:

1. 3.67% of Basic towards PF
2. 8.33% of Basic towards the Pension scheme or ₹541, whichever is lesser. The excess will be added to PF.

If you have noticed, the same amount of ₹541 is used under the pension calculation formula.

Basic salary can be of any amount, and PF is calculated based on the Basic Salary. There is no restriction on the max basic for PF, as far as I know.

EPF Contribution Details

Sandeep, this is regarding EPF. I have no idea about EPF calculation.

The rule for employer contribution is:
- 3.67% of Basic towards PF.
- 8.33% of Basic towards the Pension scheme or ₹541, whichever is lesser. The excess will be added to PF.

If you have noticed, the same amount of ₹541 is used in the pension calculation formula.

Basic salary can be of any amount, and PF is calculated based on the Basic Salary. There is no restriction on the maximum basic for PF, as far as I know.

Regards

Mosikud, you are right. Sandeep, I don't know what you can calculate about PPF. It's as good as a recurring account that is taken for tax benefits and savings. If you want clarification about the difference between both, there are many sheets available on this site.

Types of PFs

There are 3 kinds of PFs: EPF, VPF, and PPF.

If any employee has resigned and hasn't claimed yet, then the PF Department will calculate the interest for the next two years maximum. After that, interest will not be added to your accounts.

Thanks & Regards,
Manish Kumar Gera

I have noticed the entries generated for VPF in the PF calculation sheet. Is VPF mandatory? I believe that VPF is voluntary and needs to be declared by the employee to the employer. Please correct me if I am wrong.

Regards,
Gopinath
Hyderabad.

Dear all,

My background is in consultancy, so I don't know much about HR areas. I would appreciate it if you all could help me learn about different fields of HR. I would like to start with the salary calculation part. This PF calculation sheet, I'm really not understanding it. So please help me out.

Thanks & Regards,
Sanjoli

I am working for a company from September 2008 until now. I want to know what the PF accumulated until now is. Can you send me the Excel sheet so that I can know how much amount I will get until now?

Hi, I have been working for a company since September 2008, and I would like to know the total amount accumulated in my Provident Fund (PF) account up to now. Could you please send me the Excel sheet so that I can determine the total amount I will receive? You need to input your basic pay in the Basic column and then copy the last line to extend the calculation until the current month. It is important to update the Basic pay column whenever there is a change in your basic pay. Thank you.

Hi Mosikud,

Your calculation is good, but I think the PF limit is 15000 according to EPF details. If the basic salary is greater than 15000, automatically the PF amount (1800) is deducted from the employee's salary.

Please clarify the role of 541 in your calculation.

Regards,
Gaurav Tomar

Hi Mosikud,

Your calculation is good, but I think the PF limit is 15000 according to EPF details. If the basic salary is greater than 15000, automatically the PF amount (1800) is deducted from the employee's salary.

Please clarify the role of 541 in your calculation.

Regards,
Gaurav Tomar