EPFO– The PF scheme run by the central government is very useful for those working in the private sector. This fund helps in times of emergency. If you have a salary of Rs. 50,000, you have a chance of receiving a fund of more than Rs. 5 crore through PF. What does that mean..?

For an employee, PF is like a golden fund that comes in handy in times of emergency. The company also contributes PF equal to the amount deducted from the employee’s salary. PF is very useful in difficult times. It provides facilities like pension after retirement. You can withdraw PF whenever you want after 6 months of opening the account. If your salary is Rs. 50 thousand.. you can receive Rs. 5 crore through PF. Let’s find out how in this story..

Under the PF scheme, both employees and employers contribute 12 percent of their basic salary every month. The 12 percent deducted from the employee’s salary goes entirely into your EPF account. The contribution from the employer is divided into parts. 8.33 percent goes to pension and 3.67 percent to the EPF account. Interest is also earned on this.

Interest on PF

Earlier, the Employees’ Provident Fund Organization used to offer an annual interest rate of 8.15 percent on PF. This has now been increased to 8.25 percent by the department.

If you are working in a company with more than 20 employees.. as per the government rules.. that company pays PF. Your salary per month. Suppose if you join the company at the age of 30.. as per the rules, the company will deposit 12 percent of your salary in PF. The company will also deposit the same amount. Along with this, if the salary increases by 10 percent annually, after retirement i.e. after 58 years at 8.25 percent interest, your account will have more than Rs. 5 crore. Your total fund will be Rs. 5,13,74,057. In this way, you can deposit a fund of Rs. 5 crore through PF.

EPFO does not keep the PF money with itself but invests it in safe schemes. It invests 15 percent of its funds in ETFs linked to the stock market. Pension and insurance benefits are also available. The 8.33 percent deposited by the employer in the EPS becomes the basis for your monthly pension after retirement. If you contribute money continuously to the EPF scheme for 10 years, you will get pension after 58 years. Along with this, under the EDLI scheme, the family also gets insurance benefit in case of premature death of the employee.