Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    ASK IRA: Are Heat concerningly thin at power forward?

    August 15, 2022

    Body of man in his 20s pulled from River Thames

    August 15, 2022

    Maura Healey to launch ad campaign despite huge polling, funding lead

    August 15, 2022
    Facebook Twitter LinkedIn
    Trending
    • ASK IRA: Are Heat concerningly thin at power forward?
    • Body of man in his 20s pulled from River Thames
    • Maura Healey to launch ad campaign despite huge polling, funding lead
    • Elon Musk writes column for Chinese Communist Party online censor agency's magazine
    • Patriots training camp: Weeding out the studs and duds
    • Projecting the Ravens’ 53-man roster: How injuries could affect the team’s final cuts
    • Former head of British Army calls for aid to Afghanistan despite human rights abuses
    • Marshall Islands sees first community COVID outbreak as more than 3,000 test positive
    Facebook Twitter LinkedIn
    Business KhabarBusiness Khabar
    • World
    • Auto
    • Business
      • Industries
      • Opinion
    • Market
    • Money
      • Finance
      • Insurance
      • Investment
      • Schemes
    • Sports
    • Other
      • Stories
      • Career
      • Entrepreneurship
      • Property
    • Web Stories
    Business KhabarBusiness Khabar
    Home » EPF: How interest gets added to your retirement fund, when it is not available
    Finance

    EPF: How interest gets added to your retirement fund, when it is not available

    Archana SharmaBy Archana SharmaSeptember 28, 2020Updated:September 28, 2020No Comments
    Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Interest on EPF: EPFO ​​has decided to pay 8.5 percent annual interest rate on Employees Provident Fund (EPF) for the financial year 2019-20.

    Interest on EPF

    Retirement fund body EPFO ​​has decided to pay 8.5 percent annual interest rate on Employees Provident Fund (EPF) for the financial year 2019-20. This is the lowest interest rate of EPF in last 7 years. Millions of salaries contribute to the EPF every month, which is a retirement benefits scheme. An employee contributes 12 per cent of his salary to the EPF. The employer/company also contribute an equal amount of 8.33% for EPS and 3.67% for EPF in the employee’s account. The maximum salary limit for EPS is currently Rs 15,000 per month. Therefore the maximum contribution to EPS is Rs 1250 per month only.

    If you are also employed, then you will want to know from time to time how much balance is there in your EPF account. And how the interest is calculated on this balance. Explain that EPF interest is calculated every month, but the interest amount is deposited in your account only at the end of the financial year. Contribution to EPF fetches higher interest than sovereign guaranteed fixed income option like PPF.

    PPF Vs SSY: Where to deposit money for children?

    How is interest calculated on EPF

    The EPF interest calculation is done every month, but it is credited to the account at the end of the financial year. You can understand the complete calculation from this example.

    Basic salary + dearness allowance = Rs 15,000

    Employee’s contribution to EPF account = 12% of Rs 15,000 = Rs 1800

    Employer / company contribution to EPS account = 8.33% of Rs 15,000 = Rs 1250

    Employer / company contribution to EPF account = Employee’s contribution to EPS account – Employer / company contribution = Rs 550

    Total EPF contribution every month = Rs.1800 + Rs.550 = Rs.2350

    The interest rate for the year 2019-20 is 8.5 percent.

    Applicable interest per month = 8.5% / 12 = 0.7083%

    Suppose the employee has joined the job on 1 April 2019. In such a case, the contribution for the financial year 2019–20 starts from 1 April.

    • Total EPF contribution for April = Rs 2350
    • Interest on EPF contribution for April = Nil (no interest for the first month)
    • Balance in EPF account at the end of April = Rs 2350
    • Total EPF contribution for May = Rs. 2,350
    • Balance in May = Rs 4700
    • Interest on EPF for May = 4700 * 0. 7083% = Rs 33.29

    (Note: Interest is calculated every month, but it is credited to the account at the end of the financial year i.e. 31 March.)

    EPFO may sell ETF to pay 8.5% interest on PF, 2700 crores

    EPF: When do not get interest

    • When the EPF Subscriber permanently leaves the country and settles abroad.
    • After the end of the job period, if there is no claim for EPF for 36 months.
    • When the EPF subscriber retires from his job after the age of 55 years.
    • When the EPF Subscriber dies.

    Multicap Mutual Fund Replace Rules, 25% Investment in Smallcap and Midcap

    (source: paisabazaar.com)

    Source: www.financialexpress.com

    #EPF #interest #added #retirement #fund

    below CBDT employee contribution in epf employees provident fund EPF epf interest for fy20 EPFO How is interest charged on retirement funds how to calculate interest on epf interest on epf PF retirement fund
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    Archana Sharma
    • Website

    Related Posts

    Cities That Lost and Gained the Most People in the Pandemic

    August 14, 2022

    More People Are Counting on This to be Able to Buy a Home

    August 13, 2022

    Closed Las Vegas Strip Icon Makes Way for Huge New Project

    August 12, 2022
    Recent Posts
    • ASK IRA: Are Heat concerningly thin at power forward?
    • Body of man in his 20s pulled from River Thames
    • Maura Healey to launch ad campaign despite huge polling, funding lead
    • Elon Musk writes column for Chinese Communist Party online censor agency's magazine
    • Patriots training camp: Weeding out the studs and duds
    Top Posts

    Complete Information On How To Open Baby And Kids Store

    July 24, 2020

    How To Start Potato Onion Wholesale Business?

    July 28, 2020

    Small Business Ideas for Women: 5 businesses will be earning in lakhs

    July 28, 2020

    Budget 2021: You have an idea or suggestion, send it online to the government by 30 November; This is the way

    November 27, 2020
    Don't Miss
    Sports

    ASK IRA: Are Heat concerningly thin at power forward?

    By Bhagyashree SoniAugust 15, 2022

    Q: I’m a bit fearful our “run it back” mentality will flip into the yr…

    Body of man in his 20s pulled from River Thames

    August 15, 2022

    Maura Healey to launch ad campaign despite huge polling, funding lead

    August 15, 2022

    Elon Musk writes column for Chinese Communist Party online censor agency's magazine

    August 15, 2022
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo

    Subscribe to Updates

    Get the latest creative news from SmartMag about art & design.

    About Us
    About Us

    Business Khabar: Read latest business news, auto news, technology news, personal finance, industries news, investment & insurance news, startups & success stories.

    We're accepting new partnerships right now.

    Email Us: [email protected]

    Facebook Twitter LinkedIn
    Our Picks

    MBTA hiring subway dispatchers: Starting pay $103,000 and $10K bonus

    July 15, 2022

    Photos: PR maven George Regan’s wedding brings Boston, Massachusetts big-wigs to Cape Cod

    July 31, 2022

    What is Project Report? Features Requirements and Benefits.

    August 17, 2019
    Most Popular

    Delhi Violence LIVE Updates: UP-style demolition drive in Jahangirpuri from at the moment, MCD requests for 400 cops

    April 20, 2022

    Corona cases are increasing in Shanghai city of China, 438 new patients came in 24 hours

    April 3, 2022

    Housing: Still within the Dumps, Despite Rays of Light

    June 28, 2022
    © 2022 Business Khabar. Designed by ThemeSphere.
    • About us
    • Contact
    • Contribute for us
    • Privacy Policy
    • Disclaimer

    Type above and press Enter to search. Press Esc to cancel.