What is meant by the INTEREST RATE ON PROVIDENT FUND ACCUMULATIONS, which is 8.15% for the year 2022-23, and how is it different from the interest rate of 12% of PF?
From India, Lucknow
From India, Lucknow
Hi
For accumulated PF contribution Govt will declare intrest rate on yearly basis. For Pension contribution intrest will not be applicable.
Employee and Employer need to contribute PF which will be 12% of the earned basic salary. 12% is not intrest rate but % of PF contribution to be paid. For employees who are eligible for Pension, 12% of Basic goes to PF directly where as 8.33% of employer contribution goes to Pension fund ( upper ceiling Rs. 1250/-)and balance 3.67% goes to PF.
From India, Madras
948For accumulated PF contribution Govt will declare intrest rate on yearly basis. For Pension contribution intrest will not be applicable.
Employee and Employer need to contribute PF which will be 12% of the earned basic salary. 12% is not intrest rate but % of PF contribution to be paid. For employees who are eligible for Pension, 12% of Basic goes to PF directly where as 8.33% of employer contribution goes to Pension fund ( upper ceiling Rs. 1250/-)and balance 3.67% goes to PF.
From India, Madras
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.