Consider the following scenario to better understand the process used in the ET EPF Calculator:
In Sri Lanka, where can I receive EPF and ETF?
By submitting a dully filled Application for Self Member Seek for ETF e-services to the Self Employment Section at Head Office or to the nearest ETF Regional office, ETFB registered self-employed members can request log-in accounts directly from the ETFB.
What is the formula for calculating EPF and EPS?
The amount of the pension is determined by the member’s pensionable service and pensionable salary. The formula for calculating the monthly pension amount is as follows:
The EPS calculation for an individual having a basic income of Rs.25,000 and a DA of Rs.25,000 is shown below.
The surplus amount would be added to the employer’s EPF share because the maximum amount of pension that can be contributed is Rs.1,250.
Important points to know about EPS
- The employer is not required to make any contributions to the plan once the employee reaches the age of 58.
- If an employee joins a company after reaching the age of 50 and does not contribute to EPS, he or she will be unable to do so.
- The employer is not required to contribute to the pension if the employee is claiming a reduced pension and re-joins the company as an employee.
What is the difference between EPF and ETF Sri Lanka?
Terms like Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF) may fly over our heads as young folks entering the job. We fumble through our professional lives with only a hazy idea of what they are and what they entail. What’s on our thoughts is our overall take-home pay, after all, deductions are made, and we forget that in a few years, we’ll have built up a nice little nest egg.
You might think of EPF as your social security plan, and it’s a big one. According to the EPF Act, you as an employee must contribute 8% of your monthly salary to this fund, with your employer contributing another 12%.
ETF, on the other hand, is a fund administered by the Ministry of Labour and Trade Union Relations, and it is a fund to which the employer contributes (3 percent of the employee’s wage in most cases).
You can collect payments from your ex-employer, but not from where you are currently employed, if you simply change positions during the five-year term specified on the basis of marriage. “If you remove whatever amount you have accrued in your account from previous employers during this time, you would not be allowed to withdraw again unless you migrate or retire,” informed SHAMMAS AMEER, Manager – People & Culture at Capital Media Pvt Ltd.
Furthermore, when it comes to migrating, you can only claim your EPF earnings if you have been granted permanent residence. “Obtaining a work visa/permit from another country is insufficient, and you will be ineligible to receive this cash,” Shammas affirmed.
Up to your last employer, you can only claim ETF once every five years. “Until that moment, you can claim the 3% until you quit your current job.” After that, you must wait another five years before attempting a withdrawal,” Shammas explained.
What is the PF calculation formula?
The employee’s EPF contribution is equal to 12 percent of his or her basic pay + Dearness Allowance (DA). Employee contribution is 12 percent of Basic Pay + DA when Basic Pay + DA is less than or equal to Rs 15000, whereas employer contribution is 3.67 percent of Basic Pay + DA.
What factors go into calculating EPF interest?
Every month, the EPF contribution is credited to the EPF account, and interest is calculated. However, at the end of the financial year, the whole interest for the year will be credited. The interest rate for the fiscal year 2019-20 is 8.5 percent. As a result, the interest rate will be 0.708 percent, or 8.5 percent /12, for each month’s interest computation.
In Sri Lanka, how is EPF calculated?
The Employees’ Provident Fund (EPF) was founded by the Employees’ Provident Fund Act No.15 of 1958 (Act) as an obligatory defined contribution retirement program for employees in the private and semi-government sectors who do not receive pension benefits. EPF, Sri Lanka’s largest superannuation fund, administers an asset base of Rs. 2,824 billion as of the end of 2020.
The Commissioner of Labour operates as the Fund’s general administrator, while the Monetary Board of the Central Bank of Sri Lanka (CBSL) is charged with the powers, duties, and responsibilities of acting as the Fund’s custodian, according to the Act. The CBSL’s EPF Department assists the Monetary Board in carrying out the Act’s authorities, duties, and functions.
Currently, the statutory minimum contribution rate for members of the Fund is 20% of their gross monthly earnings from their job. Employers and employees (members) are both required to contribute a minimum of 12% and 8% of their monthly gross wages to the EPF, respectively. The cumulative value in a member’s EPF account, which is kept by the Central Bank and invested in Treasury Bills, Treasury Bonds, Equity and Corporate Debentures, etc., grows as the member matures in their working environment. An yearly interest rate is declared and credited to the member’s account based on the rate of return.
When EPF members achieve the retirement age of 50 years for females and 55 years for males, they are able to claim their retirement benefits (contributions and accumulated interest). Members can also withdraw cash from their EPF accounts if they migrate, become permanently disabled, leave their jobs due to marriage (only for female members), or start working in a pensionable job. In addition, legal heirs of deceased members are able to receive benefits in the event of a member’s death.
In addition to retirement benefits, the EPF assists members in obtaining loans for housing purposes from five recognized lending institutions by pledging the balances in their EPF member accounts. Furthermore, with effect from 2015, members with more than 10 years of service and an EPF account balance of more than Rs.300,000 are entitled to withdraw up to 30% of the amount lying to the credit in their member accounts with EPF for the purpose of house construction or medical treatment, as provided in the EPF (amendment) Act, No.02 of 2012.
In Sri Lanka, what is the ETF percentage?
The percentage of ETF contributions is 3%. Every company is responsible for paying ETF payments on behalf of its employees on a regular basis.
In Sri Lanka, is EPF taxable?
When a plan is consistently applicable to all employees, such as remuneration, commuted pension, retirement gratuity, and payments to the Employees Trust Fund, concessionary tax rates apply to sums given to an employee on termination of service. Employer contributions to an approved or regulated provident fund that have accumulated are tax-free when withdrawn.
How is 70 EPS determined?
EPS pension calculation According to Kasturirangan, “The EPS pension is calculated using the following formula: (Pensionable wage X pensionable service) /70 Equals monthly pension amount.” The number of years for which contributions were paid to the EPS account is referred to as pensionable service.