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EPFO updates EPF rate of 8 1 per cent approved by state EPFO ​​modi to bring interest soon – Business News India

Latest EPFO ​​Update: The Central Government has approved an interest rate of 8.1% on the Employees Provident Fund (PF Interest) deposit for the period 2021-22. The interest rate is notified after approval by the Federal Ministry of Finance. Explain that in March, the Employees Provident Fund Organization (EFPO) cut the interest rate on PF funds for employees to a four-decade low of 8.1% for fiscal year 2021-22, from 8.5% the previous year. This is the lowest interest rate that employees have deposited into their retirement funds since 1977-1978. The interest rate on the Employees Provident Fund that year was 8%.

How is interest calculated?

Let us tell you that the EPFO ​​fixes the interest rate of the EPF plan on an annual basis. The interest rate depends on market conditions and is reviewed by the Ministry of Finance. The interest rate for the 2021-22 fiscal year was kept at 8.1%. As we know, EPFO ​​invests 85 percent of its annual dues in discount instruments including securities and government bonds and 15 percent in stocks through ETFs. Income from both debt and equity is used to calculate interest payments.

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What are the rules for EPFO?
Explain that 12% of the amount realized by adding the employee’s base salary and expensive allowance is deposited into his PF account. Of the 12% of the company’s contribution, 3.67% goes to the employee’s PF account (EPF) and the remaining 8.33% goes to the employee pension system (EPS). Explain that the contribution of the company is divided into two parts, one part goes to the Pension Fund i.e. EPS and the other part goes to the EPF.

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