Dear Seniors,
1) How interest on provident fund calculated.
2) While withdrawal of PF after resignation/termination before 55 years of service does the employee get the employers share of Pension Scheme, Provident fund and EDLIS. How it is compiled?
3) Are there different procedures of calculation of interest to Pension fund, Provident fund and EDLIS.
Waiting for your kind reply.
Regards,
Shreekanth.P.R
From India, Mumbai
191) How interest on provident fund calculated.
2) While withdrawal of PF after resignation/termination before 55 years of service does the employee get the employers share of Pension Scheme, Provident fund and EDLIS. How it is compiled?
3) Are there different procedures of calculation of interest to Pension fund, Provident fund and EDLIS.
Waiting for your kind reply.
Regards,
Shreekanth.P.R
From India, Mumbai
3) Are there different procedures of calculation of interest to Pension fund, Provident fund and EDLIS.
Dear Srikanth,
1. Interest on PF is monthly compounded and round to nearest rupee seperately for both employee and employer contributions.
2. a) Pension Scheme.
If the contribution period is 9 years & 6 months and more you cannot withdrw one time amount, but monthly pension only. Otherwise you can apply for one time withdrawal benefit. Full pension will be ge given on completion of 58 years, even if you are continuing in PF.
After completion of an age of 50 years you are eligible for pension on two conditions. 1) You should not be continued in PF applicable service. 2) For each year below 58 years, 4% each will be deducted in pension amount for every year.
2 b) For withdrawal of PF amount there is no restriction regarding age limit.
2 c) EDLI (Employees Deposit Linked Insurance) is an Insurace Scheme. This will only be applicable in case of those die while in service.
3. Regarding interest accumulation on PF, it is cited above. Withdrawal benefit from pension fund is calculated as follows.
Factor as per Table D x last drawn salay, subject to a ceiling of Rs. 6500.
If you want more details such as pension calculation, PF interest accumulation etc., please inform.
Abbas.P.S, ITI LTD, PALAKKAD - 678 623.
Ph. +91 9447 467 667
From India, Bangalore
Dear Srikanth,
1. Interest on PF is monthly compounded and round to nearest rupee seperately for both employee and employer contributions.
2. a) Pension Scheme.
If the contribution period is 9 years & 6 months and more you cannot withdrw one time amount, but monthly pension only. Otherwise you can apply for one time withdrawal benefit. Full pension will be ge given on completion of 58 years, even if you are continuing in PF.
After completion of an age of 50 years you are eligible for pension on two conditions. 1) You should not be continued in PF applicable service. 2) For each year below 58 years, 4% each will be deducted in pension amount for every year.
2 b) For withdrawal of PF amount there is no restriction regarding age limit.
2 c) EDLI (Employees Deposit Linked Insurance) is an Insurace Scheme. This will only be applicable in case of those die while in service.
3. Regarding interest accumulation on PF, it is cited above. Withdrawal benefit from pension fund is calculated as follows.
Factor as per Table D x last drawn salay, subject to a ceiling of Rs. 6500.
If you want more details such as pension calculation, PF interest accumulation etc., please inform.
Abbas.P.S, ITI LTD, PALAKKAD - 678 623.
Ph. +91 9447 467 667
From India, Bangalore
Dear Seniors, Kindly give some examples for better understanding? And please enclose Table D. Regards, Gunavathy.N
From India, Ghaziabad
From India, Ghaziabad
Hello ,
Interest on Provident fund is calculated per annum at present it is 8.5 % .
If the employee works for more then 10 years in service he can not withdraw
his pension fund .
If employee dies on duty his nominee can get EDLI benefit .
The exact calculation of interest is not clear it is kept with PF authority
even i tried to calculate and tally with the PF slips it does not match..
More views on this please .
Regards,
Rajeev Dixit
From India, Bangalore
Interest on Provident fund is calculated per annum at present it is 8.5 % .
If the employee works for more then 10 years in service he can not withdraw
his pension fund .
If employee dies on duty his nominee can get EDLI benefit .
The exact calculation of interest is not clear it is kept with PF authority
even i tried to calculate and tally with the PF slips it does not match..
More views on this please .
Regards,
Rajeev Dixit
From India, Bangalore
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Provident Fund interest Calculation Tool -97-03.xls
Provident fund.zip
PROVIDENT FUND.rar