1. What is an EPF and EPS Calculator?

Definition: This calculator estimates the Employee Provident Fund (EPF) and Employee Pension Scheme (EPS) contributions based on salary.

Purpose: It helps employees and employers understand their mandatory retirement contribution amounts.

2. How Does the Calculator Work?

The calculator uses these standard formulas:

Where:

• \( EPF \) — Employee Provident Fund contribution
• \( EPS \) — Employee Pension Scheme contribution
• \( Salary \) — Basic salary plus dearness allowance

Explanation: These are standard contribution rates in many countries for social security benefits.

3. Importance of EPF and EPS Calculation

Details: Proper calculation ensures compliance with labor laws and helps in financial planning for retirement.

4. Using the Calculator

Tips: Enter your gross salary amount. The calculator will automatically compute both EPF and EPS contributions.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between EPF and EPS?
A: EPF is a savings scheme while EPS provides pension benefits. Both are part of social security.

Q2: Are these contribution rates fixed?
A: These are standard rates but may vary by country or employment terms.

Q3: Who contributes to EPF and EPS?
A: Typically both employee and employer contribute, but this calculator shows the total contribution.

Q4: Is there a salary ceiling for contributions?
A: Some countries impose maximum limits, but this calculator assumes no ceiling.

Q5: Are these contributions tax-deductible?
A: In most cases, yes, but consult a tax professional for your specific situation.