Big blow: Government has reduced the interest rate of PF, understand from the full calculation how much you will lose
Big blow: Government has reduced the interest rate of PF, understand from the full calculation how much you will lose
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About 6 crore employees of the country have got a big setback from EPFO. Yes, the interest rate of PF has been reduced from 8.5 percent to 8.1 percent (pf interest rates slashed from 8.5 to 8.1%). This means that the PF interest rates have been cut by 0.40 percent. Yes and this is the lowest interest rate in the last 40 years. In the year 1977-78, the EPFO ​​had given an interest of 8 per cent and thereafter it was 8.25 per cent or more. Now we are going to tell you how much effect (PF Interest Calculation) will be on the interest you will get on PF.

First of all, let us tell you that 12 percent deduction on the salary of an employee is made for the EPF account. On the other hand, if we talk about the employer, 8.33 percent of the deduction made by him goes to EPS (Employee Pension Scheme), while the remaining 3.67 percent goes to EPF. On the other hand, the entire 12% deducted by the employee goes to EPF. On the other hand, when it comes to salary, we consider a salary of Rs 50,000 as standard. In such a situation, if we look at the new wage code, then half of the total salary is the basic salary (25 thousand). In such a situation, the calculation of PF deducted on salary and interest on it will be something like this.

Contribution (12%) on behalf of the employee to EPF – Rs 3000

Contribution to EPF by the company (3.67%) - Rs 918

Contribution on behalf of the company to EPS (8.33%) - Rs 2082

This means if your basic salary is 25 thousand rupees, then the total contribution of both the company and the employee in the EPF every month will be around Rs 3918. At the same time, you will get Rs 2082 every month in the EPS account.

How much will be the loss on your total deposit - The above calculation is only for 1 year. Yes and it is assumed that if someone has started a job from the first month of 2021-22, then till the last month how much he will suffer due to the reduction in EPF interest rate. Now if we talk about the people who have been working for many years, then a huge amount has been deposited in their account, then even this small fall will cause a huge loss to them.

Let us tell you that at the compounding rate of 8.5 percent, you would have got an interest of Rs 133,364 at the end of the year. At the same time, at the end of the year at the compounding rate of 8.1 percent, you will get an interest of Rs 128,959. In such a situation, you will lose Rs 4,405 in 2021-22 only by reducing the interest rate by 0.40 percent.

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