The interest rate on PF balance is decided by EPFO and for this year is 8.25 percent. Check how much interest you can earn on Rs. 1 Lakh, Rs. 5 Lakh, Rs. 10 Lakh balance.
Employees’ Provident Fund (EPF) is a retirement scheme in which most of the employees get their PFs deposited by their employer. Deposits up to the Rs 1.50 lakh get tax exemption under Section 80C of the Income Tax Act, 1961. But it also gives good returns if you deposit more money into it. Check calculation as well as how to check the interest rate in your EPF account.
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According to Employees’ Provident Fund (EPFO), interest will be credited to all provident fund accounts by July-August this year. Check how much return you will get on deposits of Rs 1 lakh, Rs 3 lakh, and Rs 5 lakh in your EPF account.
The interest rate is decided by the Central Board of Trustees (CBT) of EPFO and for this year, it will be 8.25 per cent. The EPF interest for the financial year 2022-23 was 8.15 per cent.
It means that for the current year, EPF account holders will get more interest in their accounts.
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EPFO: How PF Is Deducted From Your Salary?
As per the EPFO Act, 12 percent of the basic pay and DA of any employee is deposited in the PF account. Similarly the employer also deposits a 12 percent contribution into the employee’s PF account.
Out of the company’s contribution, 3.67 percent is credited to the EPF account and 8.33 per cent is deposited in the Pension Scheme (EPS).
EPFO: Interest On Rs 1 lakh, Rs 3 lakh, And Rs 5 Lakh Deposits
If you have Rs 1 lakh deposited in your EPF account and get 8.25 per cent interest on it, your interest will be Rs 8,250 in a year.
If you deposit Rs 3 lakh, you will get interest of Rs 24,500.
For a Rs 5 lakh deposit, the interest will be Rs 41,250.
Interest on Rs 5 lakh, you will get an interest of Rs 41,250 this year.
Read More: EPFO Introduced These Major Changes To EPF Rules; Know Key Changes
EPFO: Calculation Of EPF Interest
Assume you have a total of Rs 10 lakh balance in your EPF account in the last financial year, you would have gotten Rs 81,500 in interest if a rate of interest is 8.15 per cent.
If the EPF interest rate increased to 8.25 percent, interest of Rs 82,500 will be credited on these Rs 10 lakh. So the interest rate calculation depends upon the rate of interest approved by EPFO and also the balance you have in your account.
EPFO: How To Check EPF Balance & Interest Online?
Login on to the Umang App or EPFO portal.
On EPFO portal (www.epfindia.gov.in).
– Click on the E-PassBook option.
– it will take you to another screen wherein you need to enter your UAN, password and captcha code.
– After successfully logging in, select the Member ID option for Passbook.
– Passbook will be available in PDF format, which you can download.
– You can access the passbook directly at https://passbook.epfindia.gov.in/.
