New Delhi: The Employees’ Provident Fund (EPF) is a government scheme administered by the Employees’ Provident Fund Organization (EPFO). It aims to create retirement savings for private sector employees in organised sectors. Companies with more than 20 employees are mandated to enroll in the EPF scheme. Both employees and employers contribute a percentage of the employee’s basic salary towards the EPF. Presently, EPFO offers an annual interest rate of 8.25 per cent on these contributions.
EPF interest rate: How you will you earn in 20 years
The current interest rate of 8.25 per cent applies to EPF deposits. Interest is calculated monthly but credited annually on March 31st of each fiscal year to the Employees’ Provident Fund account. For example, if an employee consistently invests ₹10,000 monthly into EPF account, and continues this investment for 20 years, the individual will get PF maturity amount of Rs 61,11,683.25 if the rates of interest remains the same. It’s important for investors to note that these rates are reviewed annually, potentially impacting the final maturity amount over such a long investment horizon.
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EPF Contribution Rates and Policies
Contribution rates vary for male and female employees in the initial three years of employment. Male employees and employers contribute either 10 per cent or 12 per cent of the employee’s basic salary, while female employees contribute 8 per cent initially, which later adjusts to 10 per cent or 12 per cent based on employer policy. Establishments with fewer than 20 employees are not obligated to contribute to EPFO, but if they opt in, the contribution rate is fixed at 10 per cent.
How to check PF amount?
To ensure EPF contributions are credited correctly, employees can check through various methods:
– Give a missed call to 9966044425
– Send an SMS to 7738299899
– Log in to the EPFO online portal
– Use the UMANG mobile application
What to do if PF is not credited?
If PF contributions are not credited on time, employees can file a complaint through EPF i Grievance Management System (EPFIGMS) or approach EPFO authorities directly with a written complaint. According to EPFO guidelines, PF payments should be credited by the 15th of each month.
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EPF interest rate: Establishments with fewer than 20 employees are not obligated to contribute to EPFO, but if they opt in, the contribution rate is fixed at 10 per cent. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
