Query about private PF trust

Pvt ltd 103 views 2 replies

Ravee

job

3 Points Joined December 2020

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)

Chirag

Professional

1979 Points Joined December 2017

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% ...