Provident fund – An update has come out for PF account holders. Actually, the government has increased the interest rates of EPF. At the same time, the government has given a big gift to the PF account holders.
If you do not know, then let us tell you that Rs 8150 will come into the accounts of these PF account holders. After this news came out, people would have started calculating it. Let us know in detail in the news below-
The government has given great news to those employed people whose PF is deducted from their salary every month. Yes, the government has increased the interest rates of EPF (EPFO interest rate) for the second consecutive year. Earlier, the government had increased it by 0.05 percent for the financial year 2022-23 and now it has increased it by 0.10 percent for the financial year 2023-24.
This means that in two years, the government has increased the interest on EPF by 0.15 percent, taking the total interest rate to 8.25 percent. Which is 3 years high.
Now the biggest question is that after this decision, how much money will come to your account as interest. After the news came, many people would have started calculating it. There is a formula to calculate it. Only after applying this, you will be able to know how much money will come to your account in the form of interest. Also, how much benefit have you received from this decision?
How is your EPF deducted?
According to the EPFO Act, 12 percent of the employee’s basic salary and inflation is deposited in the provident fund account. On the other hand, the company contributes 12 percent to the employee’s EPF account. But there is a little change in this also. 3.67 percent of the employer contribution goes to EPF and the remaining 8.33 percent is deposited in the pension scheme. In this way the provident fund of any employee is created.
How much interest money will come to the account?
EPFO’s organization CBT has decided to increase EPF interest rates to 8.25 percent. Earlier this interest rate was 8.10 percent. Now let us try to understand it with a calculation. There is a formula for this. Suppose there is a total deposit of Rs 1 lakh in your PF account.
So in the last financial year, you would have got Rs 8,150 in your account at 8.15 percent interest. Now this interest rate has been increased to 8.25 percent. If an account holder has Rs 1 lakh in his account, he will get Rs 8250 as interest. This means that the EPF account holder will get a benefit of Rs 100.
How to check EPF balance through portal-
- First of all you have to go to EPFO portal www.epfindia.gov.in.
- After that you have to click on E-PassBook option.
- A new page will open and you will have to enter UAN, password and captcha code and log in.
- After logging in, you will have to select the Member ID option for Passbook.
- After which you will get the passbook in PDF format, which can be downloaded.
- You can access the passbook directly at https://passbook.epfindia.gov.in/.
These are the benefits of EPFO account-
By default insurance is available on your PF account. Under the EDLI (Employee Deposit Linked Insurance) scheme, insurance up to Rs 6 lakh is available on PF account. Under this scheme the account holder gets a lump sum payment. Its benefit can be taken at the time of any illness or accident and death.
2. Pension after retirement
In case regular pension is deposited in the PF account for 10 years, the benefit of Employee Pension Scheme is available on the account. If an account holder remains in the job for 10 years and the amount is continuously deposited in his account, then under the Employee Pension Scheme 1995, he gets a minimum pension of one thousand rupees after retirement. However, now talks are going on to increase the pension fund.
3. Interest will be given on inactive accounts
EPFO has decided to pay interest on inoperative accounts only a few years ago, earlier this was not the case. Accounts in which no transaction has taken place for three years are put in the category of inactive accounts. Experts say that you should get your PF account transferred as soon as you change jobs. If this is not done, if the account remains inactive for more than five years, tax will have to be paid on it at the time of withdrawal.
4. PF account will be transferred automatically
Transferring PF money after changing job is now easier than before. Through your unique number linked to Aadhaar, you can maintain more than one PF account at one place. On joining a new job, there will be no need to fill Form-13 to claim EPF money. EPFO has recently issued a new Form-11. With this your previous account will be transferred to the new account.
5. Money will come to the account within an hour
You can withdraw money from your PF account in certain situations. It takes three to four days for this money to reach your account. But the government has started a new facility in view of the Corona epidemic.
Under this, money will come into the account within one hour of application. This facility has been started under medical emergency. Apart from this, you can also withdraw PF money for buying a house, higher education of children or marriage of a girl.
