Hi Seniors, I have a doubt regarding the calculation of interest at an 8.65% per month contribution:
- Employee Share PF Contribution: Rs. 672
- Employer Share PF Contribution: Rs. 206
- Pension Contribution: Rs. 466
Even after 5 months of contribution, I received the following interest amounts updated up to 31.03.2017:
- Employee Share Interest Amount: Rs. 48
- Employer Share Interest Amount: Rs. 15
- Interest Amount for Pension Contribution: Rs. 0
Why is there no interest for the Pension Contribution?
Kindly guide me on calculating the interest amount. Thank you.
From India, Chennai
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8- Employee Share PF Contribution: Rs. 672
- Employer Share PF Contribution: Rs. 206
- Pension Contribution: Rs. 466
Even after 5 months of contribution, I received the following interest amounts updated up to 31.03.2017:
- Employee Share Interest Amount: Rs. 48
- Employer Share Interest Amount: Rs. 15
- Interest Amount for Pension Contribution: Rs. 0
Why is there no interest for the Pension Contribution?
Kindly guide me on calculating the interest amount. Thank you.
From India, Chennai
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Dear Ranjeetha MP,
Employer and employee shares in PF belong to the member. Hence, when it is deposited with EPFO, they have to give interest to members. However, members have no claim on the pension fund as it is EPFO's property. Members can claim either a pension or withdrawal benefit, as the case may be. It has no connection with the deposit but depends upon the service, last drawn average salary, etc.
Abbas.P.S
From India, Bangalore
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Employer and employee shares in PF belong to the member. Hence, when it is deposited with EPFO, they have to give interest to members. However, members have no claim on the pension fund as it is EPFO's property. Members can claim either a pension or withdrawal benefit, as the case may be. It has no connection with the deposit but depends upon the service, last drawn average salary, etc.
Abbas.P.S
From India, Bangalore
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Dear Ranjeetha, The interest calculation is shown in the attached sheet, as per details provided by you. Mr. Abbas has already intimated you other details. Thanks, Vidyadhar Bhat
From India, Pune
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From India, Pune
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Dear Sir,
There are a few corrections needed regarding the contribution. EPS contribution should be restricted to Rs. 1250/- (Max. wages Rs. 15000), and the difference amount will go towards the Company's contribution. In the specimen, you have mentioned EPS wages as 15000, but the calculation is based on 25000/-, resulting in Rs. 2082.50.
All other details will be entered into the Excel file for EPF interest calculation.
Thanks,
Vidyadhar Bhat
From India, Pune
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There are a few corrections needed regarding the contribution. EPS contribution should be restricted to Rs. 1250/- (Max. wages Rs. 15000), and the difference amount will go towards the Company's contribution. In the specimen, you have mentioned EPS wages as 15000, but the calculation is based on 25000/-, resulting in Rs. 2082.50.
All other details will be entered into the Excel file for EPF interest calculation.
Thanks,
Vidyadhar Bhat
From India, Pune
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The EPFO sent out instructions to all regional offices to supply detailed working sheet of settlement from EPF a/cs. Read the circular attached.
From India, Bangalore
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From India, Bangalore
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Hi Mrunali,
PF is calculated on the basic salary of the employee. The employee contributes 12%, and the employer contributes 12% (3.67% - EPF and 8.33% - Pension). For example, if the basic salary is 8000/-, the employee's contribution would be 12/100*8000 = 960/- per month. The employer's contribution would be 3.67/100*8000 = 293.6 and 8.33/100*8000 = 666.4, then the employer's PF would be 960/- per month.
Regards
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PF is calculated on the basic salary of the employee. The employee contributes 12%, and the employer contributes 12% (3.67% - EPF and 8.33% - Pension). For example, if the basic salary is 8000/-, the employee's contribution would be 12/100*8000 = 960/- per month. The employer's contribution would be 3.67/100*8000 = 293.6 and 8.33/100*8000 = 666.4, then the employer's PF would be 960/- per month.
Regards
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EPF - Pension contribution is zero WHY.jpg
EPF PENSION CALCULATION.zip
EPF Scheme Guidelines For Implementation Of PMGKY Credit Of Employers And Employee Contribution .pdf