1. #1
    Unregistered

    Is Government paying any interest on the PF amount?

    I was working in previous company as a process associate for 2 years. When I left the organization I had applied for PF and I got Rs.50000 for 2 years services. Rs.1260 was deducted from my salary as PF every month. But I have received more than that. Does government pay interest on the PF amount incurred by the employee and company?

  2. #2
    Chittaranjan Array
    Join Date
    Jul 2012
    Posts
    658

    Re: Is Government paying any interest on the PF amount?

    Govt.is not the owner of the fund of pf.there is pf trusty who lokk after the fund and take steps to declare the pf interest rate ,you follow now the pf trusty offer 8.6% though it is higher rate if you compare today's interest rate.next year it is likely to come down.because a parity must be maintained if the fund earn 8.5 % then it is obvious trusty will offer maximum 8%,as a result inflation may come down.

    Thank you,

  3. #3
    sanju0770 Array
    Join Date
    Oct 2012
    Posts
    181

    Re: Is Government paying any interest on the PF amount?

    Dear..

    Provident fund is an amount that is deducted from your salary every month and the same amount is payable by your employer also. This whole amount goes into your PF account and government pays an interest on it. If you want to leave the company is that case you can transfer your PF also. Now coming to your question that yes dear government pays an interest on your PF which is 8.25% right now and it keeps on changing time to time.

    Hope it will help

    Cheers...!!!

  4. #4
    Ashok Array
    Join Date
    Jul 2012
    Posts
    2,293

    Re: Is Government paying any interest on the PF amount?

    Quote Originally Posted by Unregistered View Post
    I was working in previous company as a process associate for 2 years. When I left the organization I had applied for PF and I got Rs.50000 for 2 years services. Rs.1260 was deducted from my salary as PF every month. But I have received more than that. Does government pay interest on the PF amount incurred by the employee and company?
    Dear Aspirant,

    congratulation for getting your PF account settled.Yes,the government is paying the interest for the amount deducted from your salary per month & the amount of contribution made by the employer side.In fact,12% of your basic amount might have been deducted per month & the same amount of employer's side might have been given.Out of 12% of the employer's side 8.33% has gone for pension scheme for which you are not entitled because you could not complete 10years of service & 3.67% of the employer's contribution has gone to your pf amount.The interest presently @ 8.25% yearly compound have been paid to the PF amount.
    The interest is variable as per the decision of the central govt.


    Thanks.

  5. #5
    wipro84 Array
    Join Date
    Oct 2012
    Posts
    141

    Re: Is Government paying any interest on the PF amount?

    Yes friend,

    The government of india is paying the interest for the PF amount.
    This is great opportunity for the PF members.Even banks also not giving this opportunity and this high payable interest on amount.
    ---> The interest payable for the PF is 12% to the total amount.

    You will claim the 8.33 % interest yearly and this will change according to the RESERVE BANK OF INDIA.

  6. #6
    bsr Array
    Join Date
    Jul 2012
    Posts
    320

    Re: Is Government paying any interest on the PF amount?

    Hi friend,Yes government pays interest on PF. Provident Fund is percentage of salary every month deducted from salary. Same amount will be contributed by employer.8.25% interest paid by government. Hope this helps you.Keep posting..Regards,BSR.

  7. #7
    varshu Array
    Join Date
    Jan 2013
    Posts
    240

    Re: Is Government paying any interest on the PF amount?

    hello friends..

    @YES,Government Pays Interest on on the PF Amount

    @ It may vary form year to years

    @it government pays 8% interest on your PF amount

    @it may be change in future also

    all the best

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