EPFO Interest Calculation: Employees’ Provident Fund (EPF) is a retirement scheme catering to crores of employees in public and private sectors in India. The scheme run by Employees’ Provident Fund (EPFO) offers a lump sum amount at retirement in monthly pension. An employee can contribute up to 12 per cent of their basic pay and dearness allowance (DA) in their EPF account. The employer also contributes equal amount to the employee’s account. The minimum contribution from the employer side should be Rs 1,800, while in the maximum 12 per cent contribution, 8.33 per cent goes to EPF of the employee, while 3.67 per cent goes to the Employee Pension Scheme (EPS).
The latest interest rate was announced by The Board CBT in February 2024 for the financial year 2023-24. Earlier, the interest rate was 8.15 per cent.
EEE category
EPF is one of the only few categories which provide the benefit of tax exemption on deposits, interest earned and withdrawal.
The guaranteed return scheme falls under the exempt-exempt-exempt (EEE) category.
While deposits up to Rs 1.50 lakh in a financial year are tax free, the interest earned and the maturity amount are completely tax free.
EPFO: How to check EPF balance and interest received
EPF balance can be checked online. You can search it through the Umang App, EPFO portal, or SMS from your mobile set.
Go to EPFO portal (www.epfindia.gov.in).
– Click on the E-PassBook option.
– Log in on the new page by entering UAN, password and the captcha code.
– After logging in, select the Member ID option for Passbook.
– Passbook will be available in the PDF format, which can be downloaded.
– You can access the passbook directly at https://passbook.epfindia.gov.in/.
Read More: EPFO Introduced These Major Changes To EPF Rules; Know Key Changes
How much interest will you get on Rs 5 lakh, Rs 10 lakh, and Rs 15 lakh EPF contributions?
Since the interest rate is 8.25 per cent, a Rs 5 lakh EPF contribution will give you Rs 41,250 in interest and your maturity amount will be Rs 5,41,250.
If EPF your contribution is 10 lakh, you will get a total interest of Rs 82,500 and the total maturity amount will be Rs 10,82500.
If EPF your contribution is 15 lakh, you will get a total interest of Rs 123750.00 and the total maturity amount will be Rs 16,23,750.
