Dear All, Can anyone tell me about PF’s interest rate i.e. on pension, continuation etc. Regards Anjana
From India, Bhubaneswar
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11From India, Bhubaneswar
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Dear Anjana,
Greetings for the day.
First of all, you should know that the 12% contribution is from the employee's side, and 12% contribution is from the employer's side, excluding administrative charges. The bifurcation of 24% is as follows: 12% + 3.67% = 15.67%, which should be EPF on which an interest of 8.75% is provided. The remaining 8.33% should be EPS, on which no interest is provided, but a contribution of 1.16% was provided by EPFO.
Thanks & Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Greetings for the day.
First of all, you should know that the 12% contribution is from the employee's side, and 12% contribution is from the employer's side, excluding administrative charges. The bifurcation of 24% is as follows: 12% + 3.67% = 15.67%, which should be EPF on which an interest of 8.75% is provided. The remaining 8.33% should be EPS, on which no interest is provided, but a contribution of 1.16% was provided by EPFO.
Thanks & Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Dear Sumit, Thank you, But is the 8.75% is constant is it apply from the day one of contribution and what is that 1.16% epfo contribution. Regards Anjana
From India, Bhubaneswar
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From India, Bhubaneswar
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Interest rates are declared every year by EPFO board & may vary from year to year.
From India, Thane
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From India, Thane
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Dear Mr. Sumit Saxena, Thank you very much for this valuable information. Its very clear and comprehensive . Easy to understand. With best regards Rani Payaal
From India, Delhi
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From India, Delhi
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Dear Sumit, What about the 1.16%. Please clarify it . Regards Anjana
From India, Bhubaneswar
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From India, Bhubaneswar
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Dear Anjana,
Greetings for the day,
The Central Government shall also contribute at the rate of 1.16% of the pay of the members of the Employees' Pension Scheme and credit the contribution to the Employees' Pension Fund.
Thanks & Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Greetings for the day,
The Central Government shall also contribute at the rate of 1.16% of the pay of the members of the Employees' Pension Scheme and credit the contribution to the Employees' Pension Fund.
Thanks & Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Dear Sumit,
Greetings of the day.
First of all, I would like to say thank you for your valuable contribution. It is now clear to me that the central government pays 1.16% to the EPS fund of every employee. One more thing I would like to know is that our company is calculating PF based on BASIC+HRA, but the Act states it should be on BASIC+DA. Is it possible, and if so, how can this be implemented?
Regards,
Anjana
From India, Bhubaneswar
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Greetings of the day.
First of all, I would like to say thank you for your valuable contribution. It is now clear to me that the central government pays 1.16% to the EPS fund of every employee. One more thing I would like to know is that our company is calculating PF based on BASIC+HRA, but the Act states it should be on BASIC+DA. Is it possible, and if so, how can this be implemented?
Regards,
Anjana
From India, Bhubaneswar
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Dear Anjana,
Greetings for the day.
It is true that the calculation of EPF is done on basic + DA + food conc. (if any), and the basic + DA should not be less than the minimum wages defined by the state govt. from time to time. So, rather than considering HRA, consider DA.
Thanks & Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Greetings for the day.
It is true that the calculation of EPF is done on basic + DA + food conc. (if any), and the basic + DA should not be less than the minimum wages defined by the state govt. from time to time. So, rather than considering HRA, consider DA.
Thanks & Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Dear Sumit Thnx but I want to know whether it is possible or not BASIC+HRA Regards Anjana
From India, Bhubaneswar
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From India, Bhubaneswar
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Dear Sumit My Basic+HRA=8375 but company considering and deducting 12% on 6500 p/m Regards Anjana
From India, Bhubaneswar
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From India, Bhubaneswar
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Dear Anjana, Greetings for the day, Its fine if deduction is on the ceiling then its ok, which is Rs. 6500/- thanks & regards, From, Sumit Kumar Saxena
From India, Ghaziabad
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From India, Ghaziabad
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