pf interest rate, PF Interest Rate News: How much will you benefit from the increased interest rate on PF? Increased pf interest rate of 8.15 percent for fy 2022-23 will derive meagre profit to employees and pensioners
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5.50 billion benefit to employees-pensioners due to increased interest rate
In such a situation, the announcement of increasing the interest rate on PF for the financial year 2022-23 is going to give happiness to both these sections. However, this increase is very small, just 0.05%. But it should also be noted that EPF has deposits of Rs 11 lakh crore with 6 crore account holders. Getting more interest at the rate of 0.05 percent on this means that the account holders will get Rs 5.50 billion more. EPFO has said that in the financial year 2022-23, 90 thousand crore rupees will be given as interest on PF. This has become a huge interest on a huge amount. But if seen from the point of view of an individual, it appears to be just like cumin seeds in the mouth of a camel. Suppose you had Rs 3 lakh deposited in your PF account at the beginning of the financial year 2022-23. So you will get an additional profit of just Rs.150 at the higher rate of 0.5%. Actually, 0.05 percent interest only means, earning 5 paise on every hundred rupees.
But look at the other side of the coin too
Now talk about those people whose PF account is already open in April 2022-23. That is, he has joined the job in March-April 2022 only. If his basic salary is assumed to be Rs 15,000, then the announcement of the new interest rate will give him a total benefit of less than 10 paise a year on PF. Let us know how interest is calculated on PF, then we will know what is the meaning of getting 0.05 percent more interest…
There is a formula for calculating interest on PF.
If the basic salary is 15 thousand per month, then the contribution of the employee is 12% i.e. Rs 1,800.
550 over and above the company’s contribution at the rate of 3.67%.
2,350 deposited in PF every month
Interest will be available at the rate of 8.15 percent annually in 2022-23
Means monthly rate 8.15/12 ie 0.68 percent
Interest @ 0.68 on Rs 2,350 – Rs 15.98
Means total interest of Rs 191.52 in a year
If the interest rate on PF does not increase this time and the rate remains at 8.10% then
A total interest of Rs 15.86 is received every month at the rate of 0.67 percent.
Means a total of Rs 190.35 in a year
That means a profit of only Rs 1.17.
How will six crore members of EPFO get more interest? Despite the decline, his money is being spent in Adani Group
Is PF beneficial or another investment?
Keep in mind that the amount deposited in Voluntary Provident Fund (VPF) will also earn interest at the rate of 8.15 percent. Keep in mind that apart from the mandatory amount of 12% of the basic salary, the employees also get the facility to put a fixed amount in the PF fund every month, which is called VPF. Now comparing PF funds with banks, definitely PF has the upper hand, but investing wisely in mutual funds and stock market can give you much more benefits than PF. However, there is another difference between the two – that of risk. The money invested in PF is completely safe, but there is no confidence in the money invested in the market and mutual funds. You may get bumper returns, it is possible that you may have to bear big losses. Only deposits up to Rs 5 lakh in banks are safe. If the bank gets drowned, then whatever amount is more than 5 lakhs, it will get drowned. Thus, overall, PF seems to have an edge over other investment options. It is a different matter that instead of 8.10 percent, the interest rate of 8.15 percent will not be achieved by the investors.
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