The interest offered by the Employees' Provident Fund Organisation (EPFO) is likely to rise this year, say sources in EPFO. Currently, the interest rate stands at 8.25 per cent.
Power of compounding clubbed with a matching contribution from your employer every month can do wonders for you.
For Indian equities, this will a good stabilising hedge against the speculative investor breed, which is largely dominant in Indian equity markets.
FM's proposal came under immediate attack from various employees unions
Investors must explore alternate avenues like mutual funds and pension plans for building a retirement corpus.
Rahul Gandhi said Modi should instil confidence in the employees and voters by withdrawing the proposal.
The 40 per cent exemption benefit is applicable only for employees.
rediffGURU and financial planning expert Colonel Sanjeev Govila (retd) answers your personal finance-related questions.
The Employees Provident Fund Board may examine the option of investing five per cent EPF corpus money in stock markets, Union Labour Minister Oscar Fernandes said on Tuesday. Ahead of the meeting of EPF Central Board of Trustees to finalise the interest rate for 2007-08, Fernandes said that the option to make investment in the capital market was "still open".
After a three-hour meeting of the Central Board of Trustees of the EPF, CITU general secretary Tapan Sen said that the meeting decided to continue with 8.5 per cent for 2007-08, ignoring the demands by trade unions to hike the interest rate to 9.5 per cent.
The government is contemplating amending the existing law to avoid litigation in recovery of EPF dues from defaulting public and private sector undertakings, Labour Minister K Chandrasekhar Rao informed the Rajya Sabha on Thursday.
Under attack from Left parties for slashing the EPF rate by one per cent for the current fiscal, Labour Minister K Chandrasekhar Rao on Wednesday promised to do everything possible for "best returns
rediffGURU and financial planning expert Colonel Sanjeev Govila (retd) answers your personal finance-related questions.
Pawan Kumar, organising secretary of the Bharatiya Mazdoor Sangh (BMS) affiliated to the Rashtriya Swayamsevak Sangh (RSS), tells Aditi Phadnis it will join forces with other trade unions if necessary to oppose the Employees' Provident Fund Organisation (EPFO) provisions in the Union Budget.
Ahead of the crucial EPF board meeting on Tuesday, the central trade unions have demanded restoration of 12 per cent interest to provident fund subscribers.
With uncertainty prevailing over the rates of Employees Provident Fund, CPI(M)-backed trade union, Centre for Indian Trade Unions, said on Friday that it would oppose any move to keep differential interest rates
'The rate of interest from the EPF is still attractive compared to the rates on fixed deposits, National Savings Scheme, Public Provident Fund...'
Fresh formal job creation declined sequentially for a third straight month in February to fall to a 21-month low, signaling pressure in the employment market. These are the findings from the latest payroll data released by the Employee Provident Fund Organisation (EPFO) on Thursday. The number of new monthly subscribers under the Employees' Provident Fund (EPF) declined 10 per cent sequentially to 738,052 in February from 819,659 in January.
Remember, pension from EPS will be taxable at slab rate, reducing the post-tax income for people who remain in the higher tax brackets after retirement.
K Chandramouli, commissioner, Employees Provident Fund, tells Business Standard's Sreelatha Menon that expansion of the fund will make it sustainable.
Last month trade unions criticised EPFO for making it compulsory.
EPFO has allotted Universal Account Number (UAN) for portability and consolidation of all previous accounts.
EPF is the major vehicle for the long-term savings of organised private sector employees.
The central government has notified the Employees Provident Fund (EPF) rate of interest at 8.5 per cent for 2006-07. The Central Board of Trustees (CBT) of EPF, in July, had recommended interest at 8.5 per cent. The government has now accorded its approval to notify the specified rate of interest for the year.
The Union finance ministry has rejected a proposal sent by the labour ministry to double the monthly minimum pension amount to Rs 2,000 under the Employee Pension Scheme (EPS). The Central Board of Trustees (CBT), the apex decision-making body of the Employee Provident Fund Organisation (EPFO), was apprised of the proposal's rejection during a meeting on Saturday. "According to the recommendations made by a highly-empowered monitoring committee constituted by the government, a proposal to increase the minimum pension under EPS from Rs 1,000 to Rs 2,000 per month, by providing additional budgetary support, was sent to the ministry of finance.
Empolyees Provident Fund, the Central Board of Trustees of EPF is likely to meet on May 31 to take a view on the rate to be paid for the current year.\n
Central trade unions on Wednesday decided to hold a nationwide demonstration on January 20 against the government's notification of 8.5 per cent EPF rate for the current fiscal.
Don't solely focus on tax-saving alone.
The EPFO pays rate of return to its subscribers on the basis of returns it generates from its investments.
In a bid to enhance its equity exposure and earn higher returns for its nearly 65 million subscribers, the Employees' Provident Fund Organisation (EPFO) is considering reinvesting 50 per cent of its exchange-traded funds (ETFs) redemption proceeds back into equity. Sources close to the development said a proposal regarding this was discussed in the investment committee (IC) meeting in October last year, and the recommendation has been sent to the Central Board of Trustees (CBT), the apex decision-making body of the EPFO for its approval. The next CBT meeting is scheduled to be held on Saturday.
Faced with an additional burden of an estimated Rs 927 crore (Rs 9.27 billion) due to hiked interest rates, the Employees Provident Fund board will meet on March 20 to decide on whether it should approach the Finance Ministry for help.
The Central Board of Trustees on Wednesday deferred the decision on the interest rate for 3 crore (30 million) subscribers of the Employees Provident Fund.
Under attack from Left parties for slashing EPF rate to 8.5 per cent, the government on Tuesday assured the Lok Sabha that it would not hesitate raising the interest rate if there was surplus fund by the end of the financial year.
The Central Board of Trustees of the Employees Provident Fund on Tuesday unanimously decided to defer a decision on the rate of interest on EPF till July 20.
India's biggest state-run pension fund, the Employees Provident Fund, will aim to keep interest rate returns high, Labour Minister Sahib Singh said on Friday, despite an overall easier monetary climate.\n\n
The Central Board of Trustees of Employees Provident Fund Organisation is likely to cut the EPF interest by one per cent from the present 9.5 per cent when it meets on May 31.
Verma, who till recently was strongly opposed to any cut in EPF rates, however, appeared to have softened his stand as he cited the current lower interest rate regime in the country.\n\n\n\n
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