This will increase your contribution
If the company accepts your application, your contribution to the PF account will increase each month. With this, your PF money will double or even more in retirement. This time, the Employees Provident Fund Organization has recommended 8.50 percent interest in the Employees Provident Fund, ie EPF. Currently, this is the best interest in the government scheme. In such a situation, by increasing your contribution to the PF, you can also take advantage of increased interest in the PF.
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Is this the rule?
Under the Employees’ Provident Fund Act, any EPFO member can increase their monthly contribution to PF. Every month, 12% of the employee’s base salary and DA goes to PF. At the same time, only 12 percent is the company’s contribution. Any employee can increase their monthly contribution. It can also be 100% of the base salary.
The EPFO rule grants this exemption to any employee who can increase their contribution to the PF by applying to their company. This exemption is granted to you under the Employees’ Provident Fund Act. According to the rules, 12% of the base salary and DA in the Provident Fund is deposited in the employee’s share. At the same time, the same part is deposited into the employee’s account on behalf of the company. According to the rules, an employee can increase his monthly contribution up to 100% of the base salary.
How PF money will be doubled
If any employee doubles their monthly sum, then the amount of their PF fund will automatically double. For example, in the current system, 12 percent of PF is contributed on the base salary. But, if the employee increases it to 24 percent, then his PF fund will also double.
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You will get the benefit of double interest
In addition to growing your PF fund twice as fast, you’ll also get the benefit of twice the interest. Actually, PF interest is calculated using the compound interest formula. It is also called compound interest. In such a situation, the fund will be deposited in duplicate and the benefit of interest on interest will also be available each year. This way you will have a huge corpus ready for your retirement.undefined
Tags: Benefits of FP, EPFO website, pf account, contribution to the PF
PUBLISHED FOR THE FIRST TIME : April 08, 2020, 08:10 IST