EPFO Interest Rate: Employees’ Provident Fund (EPF) is a retirement scheme in which the employee and the employer deposit money in equal proportions. Deposits up to the limit of Rs 1.50 lakh in the scheme are tax exempt under Section 80C of the Income Tax Act, 1961. How much interest did you get on the money deposited in your EPF account? Know this calculation as well as how to check the interest rate in your EPF account.
EPF Interest Rate: According to Employees’ Provident Fund (EPFO), interest will be credited to all provident fund accounts by July-August this year. If you want to know how much interest will come into your account, the method is quite easy. At the same time, if you want to know how much interest you will get on deposits of Rs 1 lakh, Rs 3 lakh, and Rs 5 lakh in your EPF account, it is also easy to calculate.
Read More: EPF transfer: How to transfer provident fund online? Step-by-step guide here
EPF Interest Rate
The current interest rate of EPF is 8.25 per cent (for FY2324).
The interest rate is decided by the Central Board of Trustees (CBT) of EPFO.
It decides on the interest rate after receiving approval from the central government.
The interest rate is subject to change, but for this year, it will be 8.25 per cent.
The interest rate will benefit more than 7 crore employees in India.
They will get the interest on their EPF deposits in just a couple of months.
EPFO: Benefit of higher interest on EPF
The Board CBT increased the EPF interest rate to 8.25 per cent in February 2024 for the financial year 2023-24.
After this, it was approved by the Finance Ministry.
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.
Read More: As EPFO struggles with staff shortage, higher pension subscribers are kept waiting
EPFO: How is EPF deducted from your salary?
As per the EPFO Act, 12 per cent of the basic pay and DA of any employee is deposited in the PF account.
The company also deposits a 12 per cent contribution into the employee’s PF account.
Of the company’s contribution, 3.67 per cent is credited to the EPF account.
At the same time, 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.
In the case of a Rs 5 lakh deposit, the interest will be Rs 41,250.
EPF account holders with EPF in these proportions will get interest in their accounts by July-August.
Read More: EPFO Update: New rule simplifies EPF death claim process. Here is how
EPFO: Benefit of higher interest rate
Now let’s talk about the calculation of EPF interest.
Suppose you had a total of Rs 10 lakh in your account in the last financial year, you would have gotten Rs 81,500 in interest at a rate of 8.15 per cent.
At the same time, due to the increase in the EPF interest rate to 8.25 per cent, interest of Rs 82,500 will be available on this Rs 10 lakh.
By increasing interest by 0.10 per cent, you will get the benefit of Rs 1,000.
If you have deposited Rs 5 lakh, you will get an interest of Rs 41,250 this year.
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 phone.
Go to EPFO portal (www.epfindia.gov.in).
– Click on E-PassBook option.
– Log in on the new page by entering UAN, password and captcha code.
– After logging in, select the Member ID option for Passbook.
– Passbook will be available in PDF format, which can be downloaded.
– You can access the passbook directly at https://passbook.epfindia.gov.in/.
EPFO: EPF was started with 3% interest rate in 1952
In 1952, the interest rate on EPF was only 3 per cent. In 1972, it reached 6 per cent, and in 1984, it reached over 10 per cent for the first time.
The best time for PF holders was from 1989 to 1999.
During this period, 12 per cent interest was available on PF.
After this, the interest rate started falling.
After 1999, the interest rate never came close to 10 per cent.
Since 2001, it has remained below 9.50 per cent.
For the last seven years, it has been 8.5 per cent or less.
