EPFO News: Employees’ Provident Fund Organization gives interest for 3 years even on non active accounts. If an employee does not clear the account after leaving the job, he will continue to get interest for three years.
EPFO News: PF is deducted from the salary of employees in any private limited, government or semi-government company. The government pays interest on the amount of PF deducted from your salary. But some people withdraw money from the account which is very harmful as soon as they change jobs. If you have also changed your job some time ago, do not make this mistake at all, because it may harm you.
Even after leaving the job, interest
According to the EPFO, no employee should vacate a PF account on changing jobs. Actually people do this because they feel that after leaving the job there will be no interest on that account but it does not happen. According to the rules, even after leaving the job, interest continues to be received on the account.
Non-active accounts also benefit
Employee Provident Fund Organization pays interest for 3 years even on non-active accounts. If an employee does not clear the account after leaving the job, then EPFO pays interest on it for 3 years. On emptying the account, you not only eliminate the savings being made for a good future, as well as the pension scheme is also affected. Therefore, PF account should never be emptied. On changing the job, information should be given about the old account in the new company.
PF interest rates
Recently, the Central Government announced new PF interest rates for the business year 2020-21. Despite the difficulties of Corona Mahamari, it was announced to keep the interest rate on PF at 8.5 per cent. There was no reduction in the interest rate. The government’s move will directly benefit 6 crore EPFO members.
How much money is accumulated
Both the employees and the company together deposit 12-12 per cent of the basic salary into the PF account. The government pays interest on this account. Currently, 8.50 percent interest is being given on PF accounts. This interest rate is better than other savings accounts. Because of this, employees withdraw money from the PF account only when there is a lot of need.
