EPF Interest Rate 2022-23 Latest News, Calculate, EPF Update, when will be credited EPF Interest Rate 2022-23 Latest News, Calculate, EP...
EPF Interest Rate 2022-23 Latest News, Calculate,
EPF Update, when will be credited
EPF Interest Rate 2022-23 Latest News, Calculate, EPF Update, when will be credited
 |
| EPF Interest Rate 2022-23 Latest News, Calculate, EPF Update, when will be credited |
According to the news Next month there will be a meeting of the Central
Board of Trustees of the EPF interest rate to decide the interest rate on
deposits for the next two years in the Employees' Provident Fund. National
Pension System (NPS) contributions made by their employer, the state
government, will be eligible for a 14 % tax deduction for state government
employees starting in the financial year 2022-23.
Table of content
- EPF Interest Rate
- EPF Notification 2022
- What is the formula to calculate interest on EPF?
- EPF Salary Update 2022
- EPF Tax Benefits
- EPF Purpose
EPF Interest Rate
The
Employees' Provident Fund and Miscellaneous Provisions Act, 1952 established
the Employees' Provident Fund (EPF) as a retirement benefit system. Only
employed persons are eligible for this programme. As mentioned above, a
specified amount of contribution is deducted from the salary of the employee
and that was credited to his EPF account under the EPF scheme. The company also
contributes a part (3.67%) of the employee's EPF account.
let take an
example to understand this
If an employee’s
salary is Rs. 15000 or more the employer’s 12% contribution is divided into two
parts. 8.33% of Rs. 15000 goes to EPS account i.e Rs. 1250 per month and
balance amount exceeding Rs. 1250 is transferred to the EPF account.
For example : if an employee’s basic salary +
dearness allowance is Rs. 50,000
·
Employee contribution to EPF (12% of Rs. 50,000)
Rs. 6000
·
Employer contribution to EPF (3.67 of Rs. 50000 )
Rs. 1835
·
Employer contribution to EPS Rs 1250
Since 8.33 % of Rs. 50,000 is Rs. 4165, Rs. 1250 is transferred to the
EPS account and the balance of Rs. 2915 is transferred to the EPF account. The total
balance in the EPF account is Rs. 10750.
EPF Notification 2022-EPF Interest Rate
The Finance Ministry confirmed this in
October 2021. Thereafter, EPFO directed the field offices to deposit 8.5
percent of the interest revenue for 2020-21 in the account of subscribers as
soon as it becomes available. The responsibility of the Finance Ministry is to
approve the interest rate decision of the CBT for EPF deposits
in a financial year.
The EPFO provides the interest rate only after the government confirms it through the Ministry of Finance. Provident fund deposits are now paying an interest rate of 8.5 per cent, which is seven years lower than the 8.65 per cent offered for 2018-19. This rate was reduced for the first time in March 2020.
What is the formula to calculate interest on EPF?
Before I elaborate
on the calculation of interest on EPF deposit, let us look at some essential
aspects to understand the interest calculation.
·
Every six months, the federal government announces the interest
rate to be paid (every fiscal year). The interest rate on EPF deposits has been
8.5 per cent since 2012-13, 8.75 per cent in 2013-14 and 8.75 per cent in
2014-15.
·
Interest is calculated as a percentage of the average monthly
loan. EPF subscribers can get interest on their contributions and interest on
their employer's PF deposits.
·
However,
although the interest amount is calculated every month, the entire interest
amount is credited only once per year. It is customary for credit distributions
to take place at the end of March.
·
The
office follows a calendar year that runs from March to February.
EPF Salary Update 2022- EPF Interest Rate
If the employee's
income is more than Rs 15,000 per month, the employer can choose any one of the
following options.
·
The employer may
agree to enable the employee to contribute 12 per cent of his basic pay and
dearness allowance, subject to the contribution amount being limited to Rs
15,000 in terms of salary limit.
·
Even if the
employee's income exceeds Rs 15,000, the company can match the employee's
contribution.
·
The employer has
the option to cap both the contributions at Rs 15,000 per month salary.
EPF Tax Benefits
Employees who
contribute to their PF accounts are eligible for tax benefits under Section 80C
of the Indian Income Tax Act, 1961. This benefit can be availed in PF account
up to a maximum of Rs. Available for contribution. 1 Lac. If you contribute to
an Employees' Provident Fund account for five years, you will not be eligible
to claim tax deduction for what you have put in.
Alternatively, if you withdraw your PF
contribution before the lapse of five years and your EPF contribution was less
for a period of more than five years, income tax will be deducted at the point
of withdrawal.
EPF Purpose
Following are the
primary objectives of EPF:
·
Each employee needs to provide a single EPF account.
·
As much as possible, compliance should be simplified.
·
Make sure that the organizations follow all the rules and
regulations set up by the EPF.
·
It is necessary to ensure the dependability of online services
while enhancing their facilities.
·
All member accounts must be accessible online.
·
The time taken for resolving claims will be reduced from 20 days
to three days.
·
Promoting
and promoting voluntary compliance are two important goals.
Some important link to official site
Balance Check - Click Here
EPF Grievance - Click Here
PF portal - Click Here
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