EPFO is India's retirement benefit scheme launched for benefit from the working people. EPFO amount is made up of contributions of employee, employer, as well as the government. This post will give you basic info on EPFO. If you might be a newly joined EPF member, discover how and where some area of your salary gets invested. What is the monthly interest and rules for ones PF amount. This fund is utilized in the employee after leaving job or after retirement. The provident fund is entirely administered and maintained through the EPFO balance status. It monitors the EPF balance of all EPF accounts.
All companies using more than 20 staff are required to be registered with EPFO. Certain fixed amount is deducted from the staff member's salary every month with the employer. Employer accounts for payment of monthly PF depends upon the applicable EPF office.
What could be the Amount of PF Deduction from Salary
An employee and his/her employer both contribute 12% on the basic salary of the worker. Here, principle salary also the dearness allowance if any. The entire 12% of the staff member's contribution goes to the staff member's PF account. Out with the 12% contribution on the employer, 3.67% goes to the worker's PF account. The balance 8.33% from the employer's 12% contribution goes toward the status of PF claim of Employee's Pension Scheme.
When you might be changing job, it is very important update your new company about your EPF number. You can either transfer your PF total the new EPF account or EPF withdraw just how much.
Interest on PF
On every 1st April, the compound interest applicable on PF is decided through the central board of trustees along with the government. Rules defined by EPF government is changed each and every year so please keep visited its official site to see it. Though, the contributions to your PF account is produced monthly, a person's eye is calculated on yearly basis. Check here to calculated only on the exact amount of your EPF account and not about the EPS. There is no interest paid around the pension scheme.
Employee provident fund is definitely a significant saving scheme for many salaried class. It is launched with the government to produce financial dependency to the people after the age of retirement. Follow us for additional updates on EPF balance, PF claim status and PF withdrawal.