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Provident Fund (PF) Subscribers To Get 8.65% Interest For 2018-19: 10 Things To Know

PF interest rates: In an EPF account, the employee contributes 12 per cent of the salary, and an equal amount is contributed by the employer.

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Provident Fund (PF) Subscribers To Get 8.65% Interest For 2018-19: 10 Things To Know

PF body Employees' Provident Fund Organisation is currently settling claims at the interest rate of 8.55%

Over six crore accounts in the Employees' Provident Fund Organization (EPFO) will be credited with interest at the rate of 8.65 per cent for financial year 2018-19 ahead of the festival season, Labour Minister Santosh Gangwar said. In an EPF or Employees' Provident Fund account, the employee contributes 12 per cent of the salary whereas an equal amount is contributed by the employer, according to the EPF website - epfindia.gov.in. The salary amount includes basic wages, dearness allowance and retaining allowance.
Here are 10 things to know about recent announcements related to the EPFO account:
  1. At present, the EPFO is settling Provident Fund or PF withdrawal claims at the interest rate of 8.55 per cent, which was approved for financial year 2017-18.
  2. Under the EPF Scheme, a final PF claim is settled within 20 days.
  3. However, in the case of resignation, the member has to wait for a period of two months for withdrawal of the PF amount.
  4. Provident fund body EPFO also allows the subscriber to make a partial withdrawal from the corpus under certain conditions.
  5. A partial withdrawal claim is forwarded to the employer for approval. Once approved, the amount is credited to the subscriber's account within 10 days, according to the EPFO website.
  6. Partial withdrawal from EPF accounts is allowed for purchase/construction of house, repayment of loan, non-receipt of wage for two months, marriage of self/daughter/son/brother, for medical treatment of family members etc.
  7. "Once approved by the finance ministry, the EPFO will credit the interest amount at 8.65 per cent rate in subscriber accounts and settle claims on this rate," said Mr Gangwar.
  8. The Central Board of Trustees -- the top decision-making body of retirement fund body EPFO -- had approved an interest rate of 8.65 per cent for the financial year 2018-19 year on February 21 this year.
  9. The proposal was sent for the concurrence of the finance ministry. 
  10. Last month, retirement fund body EPFO approved a proposal to restore a provision for commutation, or advance part-withdrawal, withdrawn by the EPFO in 2009 under the Employees' Pension Scheme. 




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