New EPF Interest Rate
EPF interest rate is settled of 8.65% instead of 8.80% existing interest rate. Central Board of Trustees has reduced the interest rates due to immediate effect of demonetization. For the financial year 2016-17 employee will get the 8.65% interest rates after settling the budget proposition. It is to be said that there is a great loss in the 2016-17. Here we have provided a beautiful link to check your PF balance. With the help of this link one can track the employee, employer and government contribution on monthly basis.
What Is EPF
EPF is an indirect investment that directly cut down from the salaried employees. This scheme is valid for all those employees who earn more than 15000 in a month. PF scheme is liable for all the private employees and the government employees. It is a distribution scheme divided in three parts.
- First share is of employee. Employee shares 12% of basic salary in this scheme.
- Second share is of Employer. Employer shares same distribution to this scheme.
- And Government pay some amount of interest on this collected amount.
- Around 8.67% of employer’s distribution is directly go to the Employee Pension Scheme.
- Government pays the EPF interest rate decided by the CBT.
Drawbacks of EPF Pension Scheme
But there are some drawbacks of EPF pension scheme. According to new EPF withdrawal rules individual can withdraw PF amount only at the age of retirement. Now the retirement age is increased up to 58 years age. Now every EPF holder is given the UAN no. This UAN is compulsory for the entire EPF holder to avoid the malwares including PF. UAN no helps in knowing the PF balance online at EPFO UAN member portal. IF a person changes a job the membership in pension scheme is continue through UAN no. UAN no remains same and one can transfer the EPF account in another company.
Conclusion of EPF Interest Rate
The EPF interest rate is also going to conclude in the same investment scheme of PPF too. If you want to know and calculate your EPF interest rate, you can count it through EPF calculator online. EPF interest is paid annually every year and it is added directly to the EPF beneficiaries.