Provident Fund Interest Rate : PF Rate

EPF interest rate is nothing but the interest rate paid in the amount invested by the employee and employer. This is a one kind of pension scheme launched for the employee of India. PF is actually called and EPF (employee provident fund) in India. This is one type of contribution of employer and employer to motivate the savings of amount. Employee cut some amount of income to PF account for the betterment of retirement days. Employee gets 12% interest rate on the invested amount when he or she gets retired. In some cases people can also pay epf online after some period of time. But the reason should be valid and person has to submit the necessary document to claim the PF amount. Many companies also include medical and life insurance premium along with this.

Contribution of EPF Interest Rate
12% of EPF interest rate is divided into two parts.
1st part is divided in 3.67% contributed into provident fund
2nd part of 8.33% is divided into employee pension scheme.

What are the benefits of EPF interest Rate
Employee earn 15,000 per month is liable to cut the PF. PF scheme is good in many reasons.
1. PF amount is come under the 80 C section thereby user can gain the tax benefits from this scheme.
2. There are so many retirement benefits available to pass the tension free life of retirement.
3. There is one good advantage of PF withdrawal facility. If anyone need money in urgent one can withdraw PF amount after five years of PF savings
4. No matter if you gets transferred in other city the PF account will remain the same.,
5. If you change the job one can transfer PF account to another company.

Person must paid PF amount continuously for 9.6 years. 58 years age is the retirement age for all the employees and employee will get the benefits of pension scheme after this age. This is really such a nice investment scheme for the person to spend the healthy and tension free retirement life.


harshil.patel

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