Provident Fund Calculator Pakistan

About Provident Fund in Pakistan

A Provident Fund (PF) is a retirement benefit scheme where both the employee and employer contribute a percentage of the employee's basic salary every month. These contributions, along with accumulated interest, are paid to the employee upon retirement or resignation.

Key Features

• Mandatory Contribution: Typically 10% from both employee and employer (can vary)
• Tax Benefits: Contributions are tax-deductible up to certain limits
• Interest Rate: Set by the government annually (usually 9-10% in Pakistan)
• Withdrawal: Can be withdrawn at retirement, resignation, or in case of emergency
• Nomination: You can nominate beneficiaries for your PF balance

Types of Provident Funds

• Recognized Provident Fund (RPF): Approved by tax authorities, offers tax benefits
• Unrecognized Provident Fund: Not approved, limited tax benefits
• Public Provident Fund (PPF): Government-backed savings scheme

Note: Interest rates and contribution percentages may vary. This calculator provides estimates based on your inputs. Consult your HR department for exact figures applicable to your organization.