Employees working in the private sector often invest in some schemes and try to save a lot of money for retirement. Some invest money in Mutual Funds, while others want to save money by investing in other government schemes, but you have an option of Employees Provident Fund Organization (EPFO) account, which can give crores of rupees to private employees till retirement.
To deposit crores of rupees in PF account till retirement, you should also keep some things in mind. The most important thing is that crores of rupees will be deposited in the PF account till retirement only if you never withdraw money from this account in between. Even if you are withdrawing, increase the contribution to PF from your monthly salary, so that the money withdrawn from the PF account can be replenished and crores of rupees can be deposited till retirement. Now let us understand through calculation how you will be able to deposit crores of rupees in the PF account.
So many crores will be deposited on a salary of 50 thousand
If your total monthly salary including basic salary + DA is Rs 50,000 and you contribute 12% every month to your PF account. Your age is 30 years and the interest from the government is 8.1%. Along with this, if your salary increases by 5% on an annual basis, then by the time of retirement you will have Rs 2 crore 53 lakh 46 thousand 997. This amount will make your life easier after retirement.
How much contribution is required?
Any employer contributes as much to the PF account of the employee as the employee deposits from his salary. Currently, 12 percent of the salary is being contributed to the PF account of the employee and the same amount is also contributed by the employer. You can also increase the contribution. Apart from this, the government has fixed an annual interest rate of 8.25 percent on the amount deposited in PF.
What are the rules for getting pension
EPFO also provides pension to employees after retirement. According to EPFO rules, any employee becomes eligible to get pension after working for 10 years. This scheme guarantees pension benefits to eligible employees who reach the age of 58 years. If we look at the rules, 9 years and 6 months of service is also counted as 10 years. At the same time, the employee gets the full share in the PF account, while 8.33% of the employer’s share goes to the Employees’ Pension Scheme (EPS) and 3.67% goes to EPF contribution every month.
Source (PTI) (NDTV) (HINDUSTANTIMES)