Dear Seniors,
1) How is interest on the provident fund calculated?
2) When withdrawing PF after resignation/termination before completing 55 years of service, does the employee receive the employer's share of the Pension Scheme, Provident fund, and EDLIS? How is it calculated?
3) Are there different procedures for calculating interest for the Pension fund, Provident fund, and EDLIS?
Looking forward to your kind reply.
Regards,
Shreekanth.P.R
From India, Mumbai
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241) How is interest on the provident fund calculated?
2) When withdrawing PF after resignation/termination before completing 55 years of service, does the employee receive the employer's share of the Pension Scheme, Provident fund, and EDLIS? How is it calculated?
3) Are there different procedures for calculating interest for the Pension fund, Provident fund, and EDLIS?
Looking forward to your kind reply.
Regards,
Shreekanth.P.R
From India, Mumbai
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Dear Srikanth,
1. Interest on PF is monthly compounded and rounded to the nearest rupee separately for both employee and employer contributions.
2. a) Pension Scheme. If the contribution period is 9 years & 6 months and more, you cannot withdraw a one-time amount, but only receive monthly pension. Otherwise, you can apply for a one-time withdrawal benefit. Full pension will be given on completion of 58 years, even if you are continuing in PF.
After reaching the age of 50 years, you are eligible for pension under two conditions: 1) You should not be in PF applicable service. 2) For each year below 58 years, 4% will be deducted from the pension amount for every year.
b) For the withdrawal of PF amount, there is no restriction regarding age limit.
c) EDLI (Employees' Deposit Linked Insurance) is an Insurance Scheme. This will only be applicable in case of death while in service.
3. Regarding interest accumulation on PF, as mentioned above, withdrawal benefits from the pension fund are calculated as follows:
Factor as per Table D x last drawn salary, subject to a ceiling of Rs. 6500.
If you require more details such as pension calculation, PF interest accumulation, etc., please inform.
Abbas.P.S, ITI LTD, PALAKKAD - 678 623.
Ph. +91 9447 467 667
From India, Bangalore
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1. Interest on PF is monthly compounded and rounded to the nearest rupee separately for both employee and employer contributions.
2. a) Pension Scheme. If the contribution period is 9 years & 6 months and more, you cannot withdraw a one-time amount, but only receive monthly pension. Otherwise, you can apply for a one-time withdrawal benefit. Full pension will be given on completion of 58 years, even if you are continuing in PF.
After reaching the age of 50 years, you are eligible for pension under two conditions: 1) You should not be in PF applicable service. 2) For each year below 58 years, 4% will be deducted from the pension amount for every year.
b) For the withdrawal of PF amount, there is no restriction regarding age limit.
c) EDLI (Employees' Deposit Linked Insurance) is an Insurance Scheme. This will only be applicable in case of death while in service.
3. Regarding interest accumulation on PF, as mentioned above, withdrawal benefits from the pension fund are calculated as follows:
Factor as per Table D x last drawn salary, subject to a ceiling of Rs. 6500.
If you require more details such as pension calculation, PF interest accumulation, etc., please inform.
Abbas.P.S, ITI LTD, PALAKKAD - 678 623.
Ph. +91 9447 467 667
From India, Bangalore
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Interest on the Provident Fund is calculated per annum; at present, it is 8.5%. If the employee works for more than 10 years in service, he cannot withdraw his pension fund. If an employee dies on duty, his nominee can receive EDLI benefits. The exact calculation of interest is not clear as it is managed by the PF authority. Even after attempting to calculate and match it with the PF slips, there seems to be a discrepancy.
I would appreciate additional insights on this matter.
Regards,
Rajeev Dixit
From India, Bangalore
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I would appreciate additional insights on this matter.
Regards,
Rajeev Dixit
From India, Bangalore
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PF Calculation Sheet To The Subscribers At the Time Of Provident Fund Withdrawal.pdf
Provident Fund interest Calculation Tool -97-03.xls