The Employee Provident Fund (EPF) scheme was introduced by the Indian government to make retirement enjoyable. Under this scheme, a fixed part of your earnings is deposited in the PF account and you also receive interest on this amount. But do you know what percentage of your earnings is deposited in the PF account?
PF Account: Realizing the importance of financial security in retirement, the Indian government started the Employees Provident Fund Scheme. Any organization with more than 20 employees is required to open an account under this scheme. A person can also withdraw money from this account for education, health or any other need. But do you know what percentage of your earnings is deposited in the PF account?
This much money is deposited
It is mandatory for all employees earning less than Rs 15,000 per month to have a PF account. At the same time, it is not mandatory for people earning more than Rs 15,000 to open a PF account and they choose it themselves. 12% of any employee’s earnings (basic earnings + dearness allowance) is deposited in the PF account. Along with the employee’s earnings, the company also deposits 12% of the employee’s earnings in the PF account.
How much interest is available?
For the financial year 2023-24, the Employees Provident Fund Organization will give 8.25% annual interest on the money present in the PF account. In this way, if you have Rs 1 lakh in your account, then you will get Rs 8250 annually, Rs 41,250 annually on Rs 5 lakh and Rs 82,500 annually on Rs 10 lakh. The interest rate is decided by the CBT (Central Board of Trustees) of EPFO. This interest rate is revised during every financial year.