What is the return on additional investment in EPF?

POSTED BY Jagoinvestor ON December 19, 2010 11:46 am COMMENTS (3)

I am confused a bit on this , incase any one knows , please share .

What is the return provided on the additional investment in EPF account over and above the mandatory 12% of basic salary ? .

By default one has to invest 12% of his basic salary to EPF account and his employer matches that much amount , but suppose if an employee wants to invest more money in EPF, then employer will not match the additional amount. What is the return provided on this “additional” money ? . I came to know that its equal to PPF account , so it would be 8% , not 9.5% .

Any Idea ?

3 replies on this article “What is the return on additional investment in EPF?”

  1. Atul says:

    Hi Manish,

    Some of the companies have their own trust to manage and track EPF accounts. In such companies Voluntary contribution is not allowed. In fact my company has its own trust.

    Only advantage one has that withdrawing EPF is much faster and easier compared to the delay and hassles of Government organization.

    Regards

    Atul

  2. mkshahi says:

    As far as know , voluntary PF has same rate of interest as that of PF. There has been lot of discussions going on about this 9.5% think :)- but you should definitely get 8.5 % (the normal PF interest)

    1. Tribhuwan says:

      Correct, voluntary contribution to PF will fetch the same RoI as your normal EPF contribution earns. RoI on PF is subject to change every year. It was 8.5% last few years and I think its 9% for running year.

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