EPF Interest Calculation: The Board CBT of Employees Provident Fund Organization (EPFO) had fixed 8.15% interest on EPF Account in March 2023 for the financial year 2022-23. After this, it was approved by the Ministry of Finance in July 2023.
EPF Interest Calculation: Employees Provident Fund Organization (EPFO) had increased the interest rate by 0.05 percent and fixed it at 8.15 percent for the last financial year 2022-23. It has also got approval from the Finance Ministry in July. According to EPFO, by the end of August, interest credit will start in Provident Fund accounts. This money will start reaching the accounts of 6.5 crore EPF subscribers of the country. But, if you want to know how much interest will come in your account, then the method is quite easy. You can know from a small formula.
Benefit of higher interest on EPF
The Board CBT of the Employees’ Provident Fund Organization (EPFO) had fixed 8.15% interest on the EPF account in March 2023 for the financial year 2022-23. After this, it was approved by the Ministry of Finance in July 2023. The interest on Provident Fund has been increased as compared to earlier. For the financial year 2021-22, 8.10 percent interest was being given on EPF account.
How is EPF deducted from your salary?
If you look at the EPFO Act, 12% of the basic pay and DA of any employee is deposited in the PF account. 12% contribution is also deposited in the PF account of the employee from the side of the company. 3.67 percent of the company’s contribution is credited to the EPF account. At the same time, 8.33 percent money is deposited in the Pension Scheme.
Now understand how much you benefit from high interest?
Now let’s talk about the calculation of EPF interest. Let us 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 81,000 at the rate of 8.10% interest. At the same time, due to increase in EPF interest rate to 8.15%, interest of Rs 81,500 will be available on this Rs 10 lakh. By increasing the interest by 0.05%, you will get the benefit of interest of Rs.500. If Rs 5 lakh is deposited, then this year interest of Rs 40,750 will be received. There was a profit of Rs 250 here.
How to check your EPF balance and interest received or not?
EPF balance can be checked sitting at home. Many options have been given in this. Can trace through Umang App, EPFO portal or SMS from mobile phone.
- Go to the EPFO portal (www.epfindia.gov.in).
- Click on the E-PassBook option.
- Log in by entering UAN, password and captcha code on the new page.
- 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/.
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