Today EPFO trustees decided to offer higher interest rates for all EPF subscribers for the year 2013-14 than the previous year. They also came up with few new announcements.
EPFO trustees decided to offer a 8.75 % interest rate to all subscribers for the year 2013-14, which is more than 0.25% to previous year interest rate. But to make you aware, this interest rate declaration by trustees is not the final. Trustees recommendation will be forwarded to the Finance Ministry, which is the final approval authority. But it is presumed that the Finance Ministry will also approve this considering the upcoming general elections.
Below are the few more announcements of trustees.
- Employees’ Deposit Linked Insurance Scheme, 1976 (EDLI) maximum benefit increased by 20%. Currently the maximum benefit is Rs.1,30,000 in case of death of the employee during the service period.
- EPF and EDLI administrative charges are increased.
EPF historical interest rate since 1952
Note-
- For FY 1978-79 actual interest rate was 8.25%+0.50% (as a bonus). But this bonus will be applicable to the members who did not withdraw any amount from the account during the period of 1976-77 and 1977-78.
- For FY 2000-01, interest rate will be 12% for the period of April-June and 11% from June onward on monthly running balance.
- For FY 2004-05 actual interest rate was 9%+0.50% (Golden Jubilee Interest Rate bonus).
- For the detailed method of EPF interest calculation method, you can view my previous post “How EPF (Employees’ Provident Fund) interest is calculated?”
LIC’s new plans 2014-New Jeevan Anand (No.815)
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Praveen Kumar
Dear Sir
Why we are no getting intrest on pension part
Basavaraj Tonagatti
Praveen-This is how the rules are set 🙂
Pankaj Kumar
Sir,
I got salary rs 13000 per month what will be the total amount deducted in my pf account from both side?
JEGATHEESAN
SIR,
I WANT TO KNOW ONE THING.
SALARY IS CALCULATED FOR 26 DAYS INA MONTH. BUT FOR 31 DAYS INA MONTH HOW IT IS CALCULATED.
IF WE ARE PAYING FOR THAT EXTRA 4 DAYS MEAN WHETHER WE SHOULD DEDUCT PF AND ESI FOR THAT 4 DAYS ALSO. PLEASE SAY ASAP
Basavaraj Tonagatti
Jegatheesan-Usually salary will be calculated for entire month (including Sundays). So EPF or ESI will be for the same days.
JEGATHEESAN
SIR,
SO WE CAN DEDUCT ESI AND PF FOR THAT 4 DAYS ALSO .
Basavaraj Tonagatti
Jegatheesan-Yes.
JEGATHEESAN
SIR,
AND WHAT ABOUT FOR LEAVE ENCASHMENT AND FOR THAT ALSO WE CAN DEDUCT ESI AND PF FOR THAT
Basavaraj Tonagatti
Jegatheesan-You need to follow according to formula applicable.
OPGoyal
OPGoyal
EPF is reqd to be deducted from Leave Encashment & Equal Contribution as per rate Apli., will have to be Deposited by Employer in employee’s Of A/c Pl.
P.N.Mohanty
This is very informative and useful. I would like to know the rate of interest in GPF,PPF and EPF.
Basavaraj Tonagatti
Mohanty-Thanks. You can view the recent PPF rate in my previous post “All about Public Provident Fund“.
JEGATHEESAN
sir,
I Need to know whether salary limit for PF is extended from 6500 to 15000 rupees sir.
Basavaraj Tonagatti
Jegatheesan-No, it is still Rs.6,500 only.
JEGATHEESAN
sir,
I need to know how gratuity is calculated
Basavaraj Tonagatti
Jegatheesan-Below formula will be applied to calculate Gratuity.
(15/26) * Last Salary Drawn * Completed years of service. Here if completed years of service is more than 6 month then it will added to next year like 20 years 7 months will be equal to 21 years, 20 years 4 months will be equal to 20 years and 20 years 6 months will be 20 years only. Salary for this purpose will be Basic+DA.
JEGATHEESAN
Sir goodmorning,
EPFO ANNOUNCES MINIMUM MONTHLY PENSION IS 1000.WHETHER ITS FOR THE PERSONS THOSE WHO ARE WORKING CURRENTLY OR THE PERSON WHO RETIRED.
Basavaraj Tonagatti
Jegatheesan-It is yet to be approved by cabinet. Once it get approval then we will get clear picture. But I am 200% sure than cabinet will say “YES” looking at coming general elections 🙂
JEGATHEESAN
K SIR. BUT IT WILL BE USEFUL FOR CURRENT EMPLOYEES OR RETIRED EMPLOYEES ONLY
Basavaraj Tonagatti
Jegatheesan-To all 🙂
OPGoyal
Since June 2014 the limit for EPs 95 Contribution has been increased from earlier limit of 6500/- pm.to Rs 15000/- pm pl
JEGATHEESAN
Hello sir,
I want to know the pay structure for 12000 rs. like BASIC ,DA, HRA conveyance.
Basavaraj Tonagatti
Jegatheesan-It depends on company policy like in Rs.12,000 how much will be Basic, DA and HRA or other components of salary. There is no such rule which can say that one must fix this much Basic to employee.