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EPF Interest Rate: 8.25% interest is being given on the money deposited in the Employees Provident Fund (EPF) account. The Central Board of Trustees (CBT) of the Employees' Provident Fund Organization (EPFO) took this decision. Approval has also been received from the government. Now just waiting for it to be deposited in 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?
After getting the interest at the new rate, if you have Rs 1 lakh deposited in your EPF account, then you will get an 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, interest of Rs 41250 will come on Rs 5 lakh. According to EPFO, interest will be deposited 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 the Employees Provident Fund Organization (EPFO) in February 2024 had fixed 8.25% interest on EPF account for the financial year 2023-24. After this the Finance Ministry approved it. Interest on provident fund has been increased 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 percent of the basic salary and DA of any employee is deposited in the PF account. The company also deposits 12 percent contribution in the employee's PF account. Of the company's contribution, 3.67 percent is deposited in 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 got Rs 81,500 at the rate of 8.15 percent interest. At the same time, due to increase in EPF interest rate to 8.25 percent, interest of Rs 82,500 will be available on this Rs 10 lakh. By increasing the interest by 0.10 percent, you will get the benefit of interest of Rs 1000. If you have deposited Rs 5 lakh, then this year you will get interest of Rs 41,250.
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 check 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 in 1952 with 3% interest
In 1952, the interest rate on EPF was only 3 percent. 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%. It has remained below 9.50% since 2001. It has been 8.5% or less for the last seven years.