If an employee has ten lakh rupees in the form of an EPF and he withdraws the entire amount this year, then now he will get Rs 85500 rupees instead of 86500 i.e. one thousand rupees loss.
E-Delhi: On Wednesday, the Employees Provident Fund Organization (EPF) reduced the interest rate on the EPF. In 2016-17, the interest rate was 8.65 percent, while for 2017-18 it has been reduced to 8.55 percent. This is bad news for the millions of employees working in the private sector. If an employee has ten lakh rupees in the form of an EPF and he withdraws the entire amount this year, then now he will get Rs 85500 rupees instead of 86500 i.e. one thousand rupees loss. If someone has five lakh deposits, then according to the interest charged, there will be a loss of Rs 500. Maybe this amount seems to be very low, but the EPFO’s interest rate from 8.65 to 8.55 is expected to increase the surplus of the EPFO from 48 million to 586 crore.
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Labor Minister Santosh Gangwar said that this step is being taken due to poor returns in debt investment. When the Employees Provident Fund Organization was paying 8.65 percent interest in 2016-17, the Employees Provident Fund Organization had a surplus of 695 crore, but despite decreasing the interest rate to 8.55 percent, the surplus dropped from 695 to 586 million. is.
If surplus-positive is to cut interest rates then: Before increasing the EPF, the government had met many labor organizations, including the RSS organization’s associate organization, Indian Labor Association, which had suggested not to make any changes in the EPF interest rate. The government did not accept their suggestion. Speaking to NDTV, National Secretary-General of the Indian Worker’s Association said that if the government does not bring any change in the existing rate of 8.65, even then the government is seen to have a surplus of 48 crores, there is no point in reducing the interest rate. Made The Labor Minister said the surplus should be high, due to which the interest rate has been reduced.
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BMS will get from the MPs to reduce the interest rate: Brajesh Upadhyay said the government should have kept the old rate. The organization is not happy at the new rate. The organization is going to hand over the memorandum to all MPs from February 24 to March 4. There are already many agendas in this memorandum and the EPF agenda will also be added. Upadhyay said, I do not understand the logic of the labor minister’s surplus logic. If the benefit is with the accumulated money of the employees, then the benefit workers should get it. The Indian labor union is also upset with the reduction in the interest rate on the government’s separate savings scheme. Upadhyay said, due to the decision of the government, the impact on savings is taking place. People are unable to save, due to which the crises may be created further. Upadhyay said, the government should increase the interest rate on savings but the government is continuously reducing and by doing so the government is inviting cryices.
What could have been the interest rate ?: This question should have arisen in the minds of many people, whether the government could increase the interest paid by the EPF to 8.65 more. According to the data provided by BMS to the NDTV, this would lead to the Surplus Negative of the Employees Provident Fund Organization. If the government increased the interest rate to 8.70 then the surplus would go up to 220 crore negative, if it increased to 8.75, then 479 crore and 8.85 would have lost 1027 crore. The Employees Provident Fund Organization has total funding under the EPF of Rs 538202 crores. With this funding, the Employees’ Provident Fund Organization has earned 46602 crores through investment, provided the employees pay interest on the basis of the Provident Fund Organization 8.40, then the total interest has to be paid to 45209 crores of employees ie the Employees Provident Fund Organization 1393 crores would be beneficial but in such a way the loss of the employees increased, that is, the loss of 2500 rupees, of which one million rupees is deposited in the form of an EPF Is not. If the interest rate goes up to 8.45 percent, then the employees have to pay Rs 45478 crore as interest. In such a situation, the surplus could reach 1124 million but an employee whose one lakh has been deposited in the form of an EPF has lost 200 rupees. Lowering the interest rate to 8.50, as per the interest, the Employees Provident Fund Organization has to pay 45747 crores. In this case, the EPFO would have benefitted of Rs 855 crore but there was a loss of 3000 rupees as an interest of 20 lakh deposited.