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  
Post a Comment

Related Posts

    • EPF Issue

      I am working since Feb'2010 but in my PF account, amount is not reflecting correctly. Kindly help.

      By ARPIT KK
      /
    • Epfo negligence

      Epfo has nothing to do with employee.onky schemes are there.i have written so many times to PF office vashi,Navi Mumbai, New Delhi, but no response .thing is that at the age of 60 yrs,in my new ser...

      By Satyapal Singh
      /
    • Why EPFO does not control fraud organisation.

      Hi, all I was working with an organisation in cyber hub (Gurugram). The organisation I was working for did not deposit my PF properly missing out employers share almost completely and employee shar...

      By Krishana Singh
      /
    • PF withdrawal

      I am trying to withdraw my PF, I got married my name got changed in aadhar card too. I shared joint declaration letter, marriage certificate, aadhar card to my employer. They have shared it to Band...

      By Jasleen Sharma
      /
    • EPF & Pension withdrawal

      Pension you can withdraw if completed 58 years otherwise amount will get reduced as per rules prescribed. Interest rater is determined for 2018-19 and while releasing amount, interest will be adde...

      By Vijay Agarwal
      /
    • Partial PF withdrawal

      I want to withdraw some amount of my PF due to some urgent needs. I am in regular job. Am i allowed to withdraw some amount out of accumulated PF while still in job ? Kindly reply.

      By Deepak Shukla
      /
    • PF withdrawal

      I want to withdraw my PF & pension amount, since I am not in regular job since last 10 months. What I am waiting is, for credit of annual interest for the FY 2018-19, which is still ...

      By Ashish Jain
      /
    • working with 3 different rganisations but continuity of employment (business taken over by suceeding

      Hi, actual first initial organization date of joining is 23 April 1993, Business which was taken over by next company(demerger of Business), next company again taken over by another company (a...

      By Jagdish Vyas
      /
    • Merging 2 EPF accounts

      With the introduction of Universal Account Number (UAN), multiples EPF can be consolidated into one single account for each account holder. Each EPF account holder is allotted a UAN, spe...

      By Kirtika Khanna
      /
    • My PF skipper

      20 years back due to some frauds and CBI investigation our co. has closed. I do not know my pf no. How can I get my old PF. Kindly suggest. Thanks

      By Sanjay Seth
      /
    • how can old pf account registed in epfo account

      Dear Sir/ Mam, I am a 56 years old person i had worked in ltd company from 1985 to 1992 in 1992 i had left the company and also now company is fully closed but i have no option on line pf acco...

      By Brijesh Kumar
      /
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.)