EPF Interest rate: According to EPFO, interest will be credited in all provident fund accounts by July-August. But, if you want to know how much interest will come in your account, then the method is quite easy.
EPF Interest rate: 8.25% interest is being given on the money deposited in the Employees Provident Fund (EPF) account. This was decided by the Central Board of Trustees (CBT) of the Employees Provident Fund Organization (EPFO). Approval has also been received from the government. Now just waiting for it to be credited to the Provident fund account. This interest rate will be for 2023-24. This will benefit more than 7 crore employees of the country.
How much interest will you get?
If you have Rs 1 lakh deposited in your EPF account after getting interest at the new rate, then you will get interest of Rs 8,250 on it in a year. If you deposit Rs 3 lakh then you will get interest of Rs 24500. At the same time, in case of Rs 5 lakh, interest of Rs 41250 will come. According to EPFO, interest will be credited in all provident fund accounts by July-August. But, if you want to know how much interest will come in your account, then the method is quite easy. You can know with a small formula.
Benefit of higher interest on EPF
The Board CBT of Employees Provident Fund Organization (EPFO) had fixed 8.25% interest on EPF Account in February 2024 for the financial year 2023-24. After this it was approved by the Finance Ministry. The interest on Provident Fund was increased as compared to earlier. The interest on EPF account for the financial year 2022-23 was 8.15 percent.
How is EPF deducted from your salary?
If we look at the EPFO Act, 12% of the basic pay and DA of any employee is deposited in the PF account. The company also deposits 12% contribution into the employee’s PF account. Of the company’s contribution, 3.67 percent is credited to the EPF account. At the same time, 8.33 percent money is deposited in the Pension Scheme.
Understand how much benefit there is from higher interest?
Now let’s talk about the calculation of EPF interest. Understand this with an example. Suppose you have a total of Rs 10 lakh in your account, then in the last financial year you used to get Rs 81,500 at the rate of 8.15% interest. At the same time, due to increase in EPF interest rate to 8.25%, interest of Rs 82,500 will be available on this Rs 10 lakh. By increasing interest by 0.10%, you will get the benefit of interest of Rs 1000. If you have deposited Rs 5 lakh then you will get interest of Rs 41,250 this year.
How to check your EPF balance and interest received or not?
EPF balance can be checked sitting at home. Many options are given in this. You can find out through Umang App, EPFO portal or SMS from 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/.
Started with 3% interest in 1952
In 1952, the interest rate on EPF was only 3%. However, later it was increased. In 1972 it reached 6% and in 1984 it reached above 10% for the first time. The best time for PF holders was from 1989 to 1999. During this period, 12% interest was available on PF. After this the interest rate started falling. After 1999 the interest rate never came close to 10%. Since 2001 it has remained below 9.50%. It has been 8.5% or less for the last seven years.
