The Employees’ Provident Fund Organization is an organization that collects retirement funds for private sector employees. It also provides benefits of schemes like pension. Both the employee and the employer contribute equally to the Employees’ Provident Fund Account. The government pays annual interest on this. This helps the employees accumulate a large amount by the time they retire.
How much interest does the government pay under the scheme
The central government decides the interest on the Employees Provident Fund account on an annual basis. Currently, the government is paying 8.25 percent interest on the PF account. This interest is deposited in the employees’ account every year. There is no tax on the interest on PM deposit because it is a tax free scheme.
You can withdraw funds in case of emergency
EPFO also provides employees the facility to withdraw money whenever required. After withdrawing the fund, the employee can withdraw money for emergencies like children’s education, house, marriage, illness etc.
How much contribution will it take
- To get Rs 3 crore on retirement, the employee will have to contribute Rs 8,400 every month for 40 years. On maturity, you will get a total of Rs 3,01,94,804 at the current interest rate of 8.25 percent.
- To get Rs 4 crore on retirement, the employee will have to contribute Rs 11,200 every month for 40 years.
- Then, on maturity you will get a total of Rs 4,02,59,738 at the current interest rate of 8.25 percent.
- To get Rs 5 crore on retirement, the employee will have to contribute Rs 1200 every month for 40 years. After retirement, he will get Rs 5,08,70,99 at the interest rate of 8.25 percent.
how to check epf balance
If your mobile number is linked to EPF account, then balance can be checked by giving a missed call to 9966044425. Balance can be checked by sending an SMS by writing ‘EPFOHO UAN ENG’ to 7738299899. Balance can be checked by logging in to EPF passbook page. Balance can also be checked from Umang app.