Query about private PF trust

I 'm working in private MNC IT company where they deduct PF both share from employee & company has own trust.

I found the some mismatch of PF interest, query as below:

1)  8.65% in 2018, such an interest get on both employee and employer share monthly basis compound interest ?

For Ex. Total share of employee and employer is Rs.4400 (equal share). then end of year interest would be ₹2,309.53 for 12 months.

 

2) If employee leave organization & then after employee withdraw PF after 1 year,  in this case we get interest between left origination to withdraw date ?

 

Thanks in advance 

 

 

Replies (2)
Quick Summary
This discussion addresses queries regarding interest calculation within a private Provident Fund (PF) trust. The user is seeking clarification on whether the stated interest rate (e.g., 8.65% in 2018) applies to both employee and employer contributions on a monthly compounded basis. Additionally, they want to know if interest continues to accrue if an employee withdraws their PF after leaving the organisation.

Normally Under EPF you get it, because interest will accrue but for PF scheme set up under private trust of company itself, I would recommend you to get yourself acquainted with Broader term of SOPs, If it's written under policy made by trust you shall get Interest for the period!

If I am not wrong then Monthly Compounding happenes through Following Formula - PV *(1+'r'/m)^(m * n) -1

here, PV = Principal Value
m = Compounding Factor ( It's 12)
n = No. of Years

So For 8.65% It's About 9.0013% ...

Thank for A2A answer.

Here I want to understand that, 

1. Does same % of interest for both employee and employer ? Or its depends of private trust policy?

2. Does get interest after left the organisation ?

 

 

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