When it comes to planning for retirement, the Employees' Provident Fund (EPF) is one of the most reliable and tax-efficient savings schemes in India. We, at Shine Legal India, guide you through how EPF returns are generated, calculated, and how they are important for your future.
The Employees' Provident Fund is a retirement fund scheme governed by the Employees' Provident Fund Organisation (EPFO). 12% of the basic pay of the employee is contributed every month by the employee as well as the employer. The corpus earns interest at the end of each year, which is compounded and added to the member account.
The EPF interest rate is declared by the EPFO every financial year. The interest rate for the financial year 2023–24 is 8.25%. The interest is computed on the running monthly balance in your EPF account and is added at the end of every financial year.
Monthly investment: ₹3,600 (₹1,800 by employee + ₹1,800 by employer)
Interest rate: 8.25% per annum
Total returns grow every year because of the power of compounding.
EPF offers stable and guaranteed returns unlike market-linked products such as mutual funds or stocks. It is best suited for risk-averse investors seeking long-term financial security.
At Shine Legal India, we provide professional service in:
Our skilled legal professionals ensure smooth and law-compliant handling of your EPF needs.
