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Provident Fund
Calculation Result

Estimated Provident Fund after years:
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What is a Provident Fund?

A Provident Fund (PF) is a long-term savings scheme designed to help employees build a financial safety net for retirement or when they leave a job. It involves regular contributions from both the employee and employer, which are accumulated and invested over time to earn returns.

How This Provident Fund Calculator Works

This calculator estimates the total provident fund amount you will accumulate by the time you retire or leave your job. It assumes both you and your employer contribute a fixed percentage of your basic salary each year, and that amount is invested in a low-risk fund with compounding returns.

Basic Salary Input: You enter your current monthly basic salary in Pakistani Rupees. This will be used to calculate your annual contribution.

Contribution Formula: Every year, 8.33% from you and 8.33% from your employer (total 16.66%) of your basic salary is contributed to your provident fund.

Annual Increment: You enter your expected annual salary increment percentage (e.g., 10%). Each year, your basic salary increases by this percentage, and so does the contribution.

Investment Growth: The contributed amount is assumed to be invested in a low-risk fund which gives an average return of 15% per year. This return is compounded annually.

Years of Service: You provide the number of years you plan to work or retire.
Compound Growth Calculation: The calculator sums up the future value of each year’s contribution using compounding, so your total fund grows faster over time.

Example:
If your current basic monthly salary is PKR 50,000/month, annual increment is 10%, and you work for 25 years, the calculator will estimate your total provident fund value at the end of 25 years, including compounded returns.

Provident Fund vs Gratuity vs VPS - What’s the Difference?

Understanding the difference between Gratuity, Provident Fund, and Voluntary Pension Scheme (VPS) is essential when planning for your financial future or managing employee benefits.

Feature Provident Fund (PF) Gratuity Voluntary Pension Scheme (VPS)
Nature Monthly contributions by both employee & employer Employer-paid lump sum at end of service Long-term investment for retirement by individual
Eligibility Usually starts from day one (as per policy) After 5 years of continuous service Open to all individuals (employees, self-employed, etc.)
Who Contributes? Employee & Employer (usually 8.33% each) Employer only Individual contributor (voluntary)
Withdrawal Time Partial before 1 year, full at retirement/separation At resignation, retirement, or termination After retirement age (60), with early withdrawal penalties
Tax Benefit Tax exemptions on contributions and returns Tax-exempt up to a limit if conditions met Tax rebate on contributions (up to 20% of taxable income)
Managed By Employer (via approved PF trust or bank) Employer Asset Management Companies regulated by SECP
Risk/Return Low-to-moderate risk depending on investment choices No investment risk (fixed benefit) Risk depends on chosen VPS fund (low to high options)

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