By the way, your salary breakup is decided by the company, but if you want, you can change it with the EPF.
After having KYC, you can easily withdraw money from the account anytime.
The month of April is half over and is considered very special for employees working in private jobs. If you want too, you can make a lot of changes in your salary and plan for your future in this month. Actually, in the month of April, companies change the salary structure of all employees and due to appraisal, the salary of employees changes. In such a situation, apart from the company, you can also change your salary according to your company.
By the way, your salary breakup is decided by the company, but if you want, you can change it with the EPF. Yes, in the month of April, employees have the chance that they can increase their share of EPF. If you get enough salary from these hands and want to save some money from it, then you can increase the share of EPF, due to which you get good money for retirement and get the money together with interest.
Good option is to increase EPF
If you are also employed, then you can also double the EPF money from this month. You can get your employer to increase PF contribution to EPF Account. This will definitely reduce your in-hand salary. But, there will be a good option in terms of savings and tax. Currently, the provident fund (EPF) earns 8.55 per cent interest. If the contribution will increase, you will also get more interest. This will not only keep the money secure, but you will also get benefit in tax. An employee can increase his monthly contribution up to 100% of basic salary.
This option is effective for employees whose cash in hand salary is sufficient for them and they are saving from their salary every month. In such a situation, like getting a policy, they can deposit an amount directly from their account and it will start depositing in your PF account and you will get further benefits along with tax. Interest received on EPF is compound interest. Therefore, there is also an opportunity to earn more interest every year by accumulating more money. The interest on PF is calculated by the compound interest formula.
How is interest calculated?
Interest is calculated on the basis of money deposited in the EPF account every month i.e. Monthly Running Balance. But, it is deposited in the account at the end of the year. EPFO always takes the opening and closing balance of the account. Interest calculation is done at the end of the current financial year. By adding the balance amount on the last date of every month of the year, the interest amount is extracted by multiplying the fixed interest rate by 1200 times that amount.
Also read- SBI Alert! Never search the internet, these numbers can be withdrawn from the account