Rate of Interest for PF Account - provident fund Xls Download
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mridula.parihar Started The Discussion:

Hi All, I have to enquire about PF interest Rate. Can anyone please tell me whats the annual rate of interest for a PF account.

muninder - Member Since: Dec 2007
hi,

please refer this link:

Employees’ Provident Fund rate will not change in financial year 2009-2010 | Tax Guru


Muninder

G1976 - Member Since: May 2010
EPF interest rate remains unchanged at 8.5% for 2009. Kindly refer link.

EPF interest rate remains unchanged at 8.5%-Savings News-Savings Centre-Personal Finance-The Economic Times

Thanks,

GK

shils37 - Member Since: Jan 2010
Hi,

The PF contribution is 12% of Basic salary from both employee and employer. For the calculation the maximum limit of Basic is Rs 6500/-. It means even if the employee's basic salary is above Rs 6500/- the employer is liable to contribute only on Rs 6500/-, that is Rs 780.
However if an employee so desires he may voluntarily contribute more than 12%. Apart from it an employer also has to pay some administration charges. I explain you the various accounts of PF challan.

A/c No 1: PF contribution Account
A/c No 2: PF Admin account
A/c No 10: EPS account
A/c No 21: EDLIS account
A/c No 22: EDLIS admin account

PF admin charge = Employer has to pay 1.1 % of basic
EDLIS: Employer has to pay 0.5% of basic
EDLIS admin charge:Employer has to pay 0.01% of basic

Total additional percentage employer has to pay: 1.61% of basic

So employer has actually to pay 13.61 % of Basic and employee has to pay only 12% of basic.

Employees complete 12% goes to PF account to with draw, while employer contributions' 8.33% goes to Pension fund and 3.67% goes to PF fund.

Hope that helps!
Regards,
Shilpa

Dr.G.P.Kimothi - Member Since: May 2010
The gentle man ask you, what is the interest rate of PF Iprovident fund) account, not contribution of PF.

Dr.G.P.Kimothi - Member Since: May 2010
Hi All, I have to enquire about PF interest Rate. Can anyone please tell me whats the annual rate of interest for a PF account.

seahorse - Member Since: Jul 2009
Hai, PF Annual interest may vary from year to year and that will be decided by the Central Government. This year i.e., for 2009 - 2010 the interest rate will be 8.5%. P. Karunakaran

Ravster - Member Since: Jan 2009
Quote:
Originally Posted by shils37 View Post
Hi,

The PF contribution is 12% of Basic salary from both employee and employer. For the calculation the maximum limit of Basic is Rs 6500/-. It means even if the employee's basic salary is above Rs 6500/- the employer is liable to contribute only on Rs 6500/-, that is Rs 780.
However if an employee so desires he may voluntarily contribute more than 12%. Apart from it an employer also has to pay some administration charges. I explain you the various accounts of PF challan.

A/c No 1: PF contribution Account
A/c No 2: PF Admin account
A/c No 10: EPS account
A/c No 21: EDLIS account
A/c No 22: EDLIS admin account

PF admin charge = Employer has to pay 1.1 % of basic
EDLIS: Employer has to pay 0.5% of basic
EDLIS admin charge:Employer has to pay 0.01% of basic

Total additional percentage employer has to pay: 1.61% of basic

So employer has actually to pay 13.61 % of Basic and employee has to pay only 12% of basic.

Employees complete 12% goes to PF account to with draw, while employer contributions' 8.33% goes to Pension fund and 3.67% goes to PF fund.

Hope that helps!
Regards,
Shilpa

Hi Shilpa!

Thanks for the information..
I was asked this question in my interview, what are the administrative charges for provident fund.. I could not answer, but now I know after reading your post..

Thanks

Ravi

Ravster - Member Since: Jan 2009
Hi Shilpa! I want to ask one question regarding employer contribution. 8.33% which goes to Pension fund, when does one get that amount.. Thanks Ravi

anjireddy - Member Since: Oct 2007
Dear Friend, As per Annual Account Statement interest rate for the year of 2009-2010 is 8.5%. with regards naresh


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