Will I get interest on PF after retirement? | Value Research (2024)

FAQs

Will I get interest on PF after retirement? | Value Research? ›

After retirement, if there are no contributions made into your PF account for three consecutive years, the account becomes inoperative. Once the account becomes inoperative, you will stop earning interest on it as well.

You will get EPF interest for up to 3 years after retirement. After 3 years of no contribution to your EPF account, it becomes inoperative and will not earn any interest.

Ans : There is no restriction of period for membership. Even after leaving the establishment a person can continue his membership. However, if no contribution is received into a PF account for 3 consecutive years the account shall not earn any interest after 3 years from the stopping of contribution.

In this way, the maximum pension can be taken from EPS up to Rs 7,500 and the minimum pension up to Rs 1,000. You can also calculate your pension amount through this formula. An employer contributes 3.67 per cent of the employee's salary towards the EPF and 8.33 per cent towards the EPS.

The interest calculation on the EPF of the employee is explained by the given example. For example, The employee provident fund interest rate for 2023-2024 is 8.15% ,the interest applicable per month. When calculating interest, is = 8.15%/12 = 0.00679166666.

Under Employee Provident Fund Act 1952, you can withdraw the full PF amount if you retire from your service after having attained the age of 58 years and you can also claim the EPS amount (Employees' Pension Scheme amount) at the same time.

All employees must contribute until the age of 75 with no minimum age. From the age of 60, only employer contributions are payable. The EPF contribution rates vary according to the employee's age and whether they are a Malaysian/permanent resident.

All continuing EPF members will also receive the credit of interest which was recommended by the Central Board of Trustees in February 2024 and subsequently approved by the Finance Ministry in May this year, it said.

The PPF/Public Provident Fund interest rate is credited at the end of the financial year. You will not get PPF interest on a monthly or quarterly basis. You may have contributed more than the limit of Rs. 1.5 lakh per annum.

How long can I keep EPF after retirement? ›

How long can I keep my money in EPF Malaysia? The EPF body has recently clarified that beneficiaries will continue to earn dividends up to the age of 100 if they have not withdrawn their funds from their Provident Fund account.

Complete Withdrawal

EPF can be withdrawn under these circ*mstances: When an employee retires. If an individual is unemployed for more than a month, then he/she can withdraw 75% of fund. If an individual is unemployed for more than 2 months, then he/she can withdraw 100% of fund.

Members aged 55 years and above, have the option to invest part of the saving by making Age 55/60 Withdrawal (Investment). This withdrawal is not part of the Members Investment Scheme. Applications for such withdrawal, can be made through i-Akaun (Member). (Please refer to Age 55 & Age 60 Withdrawal Brochure).

(5) Interest shall not be credited to the account of a member if he informs the Commissioner in writing that he does not wish to receive it.

EPFO hikes EPF interest rate to 8.25% for FY 2023-24

The interest rate on provident fund deposits has been raised to 8.25% for the fiscal year 2023-24 by the Employees' Provident Fund Organisation. This signifies an increase from the preceding year's 8.15% and the 8.10% rate in 2021-22.

Interest is calculated monthly but credited yearly in April or May. Interest is compounded annually and added to your principal amount for next year's calculation. To check if interest was credited to your account, visit EPFO's website or use the UMANG app with your UAN and password.

Invest in shares and mutual funds

Mutual funds offer you a rate of return up to 20% based on your portfolio. These investment options are also highly liquid and let you exit your investment any time during the tenor.

Interest is compounded annually and added to your principal amount for next year's calculation. To check if interest was credited to your account, visit EPFO's website or use the UMANG app with your UAN and password. Check your EPF balance and passbook online, via SMS, or missed call service.

& Delay in deposit of P.F. dues attracts penal damages. & Damages are levied at the following FLAT RATES: Ì For 0 — 2 months delay - @ 5 % p.a. Ì For 2 — 4 months delay - @10 % p.a. Ì For 4 — 6 months delay - @ 15 % p.a.