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
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From India, Lucknow
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Hi,
For accumulated PF contributions, the government declares the interest rate on a yearly basis. For pension contributions, interest is not applicable.
Employees and employers need to contribute to the PF, which will be 12% of the earned basic salary. This 12% is not an interest rate but the percentage of PF contribution to be paid. For employees eligible for a pension, 12% of the basic salary goes directly to PF, whereas 8.33% of the employer's contribution goes to the pension fund (with an upper ceiling of Rs. 1250), and the remaining 3.67% goes to the PF.
From India, Madras
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1015For accumulated PF contributions, the government declares the interest rate on a yearly basis. For pension contributions, interest is not applicable.
Employees and employers need to contribute to the PF, which will be 12% of the earned basic salary. This 12% is not an interest rate but the percentage of PF contribution to be paid. For employees eligible for a pension, 12% of the basic salary goes directly to PF, whereas 8.33% of the employer's contribution goes to the pension fund (with an upper ceiling of Rs. 1250), and the remaining 3.67% goes to the PF.
From India, Madras
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PF Calculation Sheet To The Subscribers At the Time Of Provident Fund Withdrawal.pdf
PF-Know Employees Provident Fund-CHART-L-4. doc