InvestorQ : What is the amount employees get from the EPFO at the beginning of every financial year?
Shreya Mashelkar made post

What is the amount employees get from the EPFO at the beginning of every financial year?

Answer
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Nitin Shah answered.
1 year ago


All employees in India, who work in companies with over 20 employees, get a Provident Fund account opened in their names. This is a mandatory account and amounts to 12% + Dearness Allowance of one’s salary gets deducted every month to contribute towards this account.

EPF or Employees’ Provident Fund is a government-operated savings scheme for all those individuals who are employees in the organised sector. EPF rate is determined by the Employees Provident Fund Organisation (EPFO), the main EPF agency under the Employees’ Provident Fund Act, 1956.

The amount that an employee receives at the beginning of a new financial year is the interest earned on one’s contribution.

This interest is the compound interest that is determined by the government and Central Board of Trustees (CBT; of the EPFO) is paid on the amount which is credited to the employee on the first of April, every year or the first day of the financial year.