Understanding PF Interest Rates: Can Anyone Explain Pension and Continuation Details?

Can anyone tell me about PF's interest rate, i.e., on pension, continuation, etc.?

Regards,
Anjana

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

Thank you for your assistance. Could you please clarify if the 8.75% rate is constant and applicable from the first day of contribution? Additionally, I am curious about the 1.16% EPF contribution.

Regards,
Anjana

Interest Rates Declared by EPFO

Interest rates are declared every year by the EPFO board and may vary from year to year.

What about the 1.16%? Please clarify it.

Regards,
Anjana

Dear Anjana,

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

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