How EPF Interest Rate Calculation Works

If your Basic + DA is Rs 20,000 and the interest rate = 8.65%. The monthly applicable interest here will 8.65/12 = 0.721%

Employee contribution to EPF will be equal to 12% of Rs 20,000 = Rs 2400

Employer contribution will be = 3.67% of Rs 20,000 = Rs 734.

Hence, the total monthly contribution in your EPF account will be Rs 2400+Rs734 = Rs 3134 more  

Actually govt declares the interest every year and they are computed monthly if i remember it right but against the balance of the end of the year the interest is given and not every month so even though we may be paying like a recurring deposit every month but interest is calculated on the principal at the end of the year amount so we lose lot of money. more  
Thank you Mr. Naveen Goel for this valuable information on calculation of EPF which I myself had not remembered now. But the regret is that most of the problem like employees not getting their Funds at the end of the term is because of the failure of the employers either not depositing their contributions or not giving timely clearances. more  
Hence monthly interest will be 3134*0.721%= rs 22.60 the interest will be calculated every month but deposit will be made end of financial year more  
Please note change in my e-mail id. My new e-mail id is nikesh.shah@renaissanceglobal.com.

Best Regards,
Nikesh Shah. more  

Related Posts

    • Date of Exit update in UAN portal by employer

      My employer took three month to settle my final dues and not updated my date of exit in UAN portal and says only after crediting my final PF contribution they can update the DOE is there any other ...

      By Vijayakumar Natarajan
      /
    • INTEREST ON PF

      Please be informed that no interest will be paid of PF accounts where there is no contribution from both the employer as well as employee for more than two years. It is suggested that the accumula...

      By SUBRAMANIAN PALLAVOOR
      /
    • INTREST AMOUNT PF

      Please help i was working private company 2006 & left the company in 2008.now company was create my UAN but i was seen my passbook only year 2009 to 2011 interest appear on my PF passbook, ba...

      By CHANDRAKANT ZANKE
      /
    • interest on contribution in EPFO when the person is not in service since last 4 years

      Dear sir, I am not in any job throughout country and my contribution in EPFO is not being done by me as well as by my employer. I have got interest on my contribution till 2017-18. I want to know...

      By Sushil Kumar Goel
      /
    • pension contribution

      please help how can i withdraw pension contribution from my PF account??

      By CHANDRAKANT ZANKE
      /
    • PF Online withdrawal claim processing timeline

      Hello, Is there any timeline when the PF office processes the PF withdrawal claim raised online?

      By Rajat Palav
      /
    • Good work EPFO

      The Employees Provident Fund Organisation (EPFO) has simplified the process to withdraw one’s provident fund account balance, from multiple forms to a single online form and this is applicabl...

      By Naveen Goel
      /
    • Accessing your EPFO details

      Employees' Provident Fund Organisation which recently announced EPF interest rate increase to 8.65%, is expected to credit the EPF interest rate in members' account for the previous financial year....

      By Naveen Goel
      /
    • How to claim my EPF online

      Dear Experts, I am in urgent need of money due to family medical emergency. I tried to claim my EPF online(Online Services->ONLINE CLAIM (FORM 31,19 & 10C)). But after logging through UAN nu...

      By Sanman Kelkar
      /
    • PF withdraw

      i was working 3 year i:e 2006-2008 in private organisation but last 10 years i was not withdraw my PF that time only PF account no so now i want to withdraw my PF..but previous company not enter t...

      By CHANDRAKANT ZANKE
      /
    • PF Family Pension not received

      I had a long service with one organisation. But since my department of that organization was merged with another organization, technically I had PF from 2 companies (their own trusts). PF (Only PF ...

      By RT RAJ
      /
Share To
Enter your email & mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

Please select a Circle that you want people to invite to.
Invite to
(Maximum 500 email ids allowed.)