The PF scheme became started with the aid of the vital authorities for the non-public zone personnel. authorities personnel can also spend money on this scheme.
however it become designed by means of EPFO especially for the personnel working within the private area. in this scheme, 12 percentage of the worker's profits is deposited in the PF scheme, and the company itself deposits the same quantity. let us inform you that if a person's income is Rs 50 thousand, then how will he create a fund of Rs five crore from this scheme?
The PF scheme has been designed by way of EPFO to come to be a aid for the antique age of people running within the non-public quarter. on this scheme, the fund is deducted from the employee's income, wherein 12 percent contribution is deducted from the worker's revenue, and the employer itself deposits the identical amount in the PF account. The interest in this is decided via EPFO.
interest received on PF
The interest price on PF has been revised by way of EPFO. in advance, the personnel' Provident Fund organization used to provide 8.15 percentage hobby on PF annually, which has now been expanded to 8.25 percent by way of the department.
this is the calculation.
in case you paintings in a organization where there are greater than 20 employees, then in line with the authorities rules, that organization will make investments within the PF fund. Now, suppose your basic profits consistent with month is Rs 50 thousand and also you begin operating at the age of 30, consistent with the EPFO policies, the organisation will placed 12 percent of your salary in PF and will deposit the identical amount itself. along side this, if the salary increases by 10 percentage yearly, then in step with the hobby of 8.25 percentage, after retirement, i.e., after fifty eight years, you may have extra than Rs 5 crore. Your total fund can be Rs 5,13,74,057.
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