The Employees Provident Fund Organization (EPFO) handles the accounts of its crores of shareholders. Employees and employers deposit 24 percent of the basic salary and dearness allowance in these accounts. The interest that accrues on the deposit is very important. In such a situation, people need to know how the EPFO determines the balance through interest.
The amount of opening and closing balance is fixed:
EPFO always takes opening and closing balance of the amount in the account. This amount is fixed at the beginning and end of a financial year. To calculate this, the monthly running balance is added and multiplied by the interest rate / 1200.
Withdrawing money also makes an impact:
If any amount is withdrawn during the current year, then the interest amount is taken from the beginning of the year to the month immediately before the withdrawal. The opening balance of the year will be its opening balance + contribution-withdrawal (if any) + interest.
For example, if the interest rate is 8.65% and the balance is Rs 1,12,345, then the total monthly balance will be Rs 11,04,740. The interest will be 1104740 X (8.65 / 1200) = Rs 7,963. In this way, the closing balance of the year will be opening balance + contribution-withdrawal + interest 1,12,345 + 1200 – 25000 + 7963 = Rs 96,508
The government has approved the promotion of employment and the promotion of new employment opportunities. This approval has been given to promote employment in the formal sector of Covid Recovery Phase under Self-reliant India Package 3. An amount of Rs 1,584 crore has been allowed to be spent for the current financial year.
All new employees will get subsidy for a period of two years:
According to the information, it has been revealed that about 58.5 lakh employees can be benefited during this plan period. Under this scheme, the central government will provide subsidy for a period of two years to all new employees involved on or after October 1, 2020 and till June 30, 2021.
PF government will be filled for 2 years:
According to this, in the employment provider organizations which have more than 1000 employees, the Central Government will contribute only 12 percent of the employees in EPF for a period of two years in respect of new employees.
An employee whose monthly salary is less than Rs 15,000 and was not working in an institution that was registered with the EPFO before October 1, 2020 and has a Universal Account Number or EPF member before this period If there was no account number then he would be eligible for this scheme.