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Provident Fund (PF) is the biggest support for future security for employed people i.e. salaried class. This fund not only comes in handy in case of any sudden medical or personal emergency, but also makes life after retirement completely secure and stress-free. According to the rules of the Employees Provident Fund Organization (EPFO), if the basic monthly salary of an employee is Rs 15,000 or more, then it becomes mandatory for him to come under the EPF scheme.
Recently EPFO has revised the interest rate on PF deposits for the financial year 2025-26. 8.25% But have decided to retain it. Since this announcement, this question is arising in the minds of crores of employees that how much interest money will come to their account and how is it calculated?
How much and where does the money go in your PF account?
When your salary comes, a fixed portion is deducted in the name of PF. This contribution comes from two sides:
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Employee Contribution: The employee has to pay his basic salary and dearness allowance (DA). 12% The share has to be compulsorily deposited in your PF account.
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Company’s Share (Employer Contribution): The same amount (12%) is also deposited by your company or employer. However, this 12% of the company does not go directly to one place, but is divided into 3 different parts:
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3.67% share: Directly deposited into your EPF account.
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8.33% share: Goes to the Employee Pension Scheme (EPS), which provides pension after retirement.
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Remaining part: Deposit is made in EDLI i.e. Employee Deposit Linked Insurance Scheme.
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How is PF interest calculated?
Many people think that interest on PF is calculated directly on the remaining balance at the end of the year, but it is not so. Interest on PF is definitely calculated on an annual basis, but its calculation Monthly Running Balance It is done keeping this in mind. The total interest for the entire year is calculated and credited (added) to your account at once after the end of the financial year.
Let us understand this with an easy example. Assuming the opening balance of your PF account on April 1 is a fixed amount, a list of the estimated interest you will earn at the current annual interest rate of 8.25% is given below:
Note: This is an approximate calculation. The actual interest amount may vary slightly depending on the monthly contributions deposited by you and your company as the total account balance increases each month.
How to check your PF balance at home in 2 minutes (4 easy ways)
There is no need to visit offices to know whether the interest money has been credited to your account or not and what is your current balance. You can check your balance sitting at home in these 4 ways:
1. Through missed call (Missed Call Service)
Link (registered) mobile number to your PF account directly 9966044425 Give a missed call. After the ringing, the call will be disconnected automatically and within a few seconds an SMS will come on your phone, which will contain information about your total balance and last contribution.
2. By sending SMS (SMS Service)
Type a message from your registered mobile number: ‘EPFOHO UAN ENG’ (If you want information in Hindi then write HIN instead of ENG) and this 7738299899 Send it to. You will get details of your PF balance in an instant reply.
3. Official Website/Passbook Portal (EPFO Portal)
Visit the official website of EPFO and select the option of ‘Member Passbook’. there my UAN (Universal Account Number) And log in by entering the password. As soon as you login, your entire passbook will open in front of you, where you can see the interest from year to year.
4. Use of UMANG App
Download the official ‘UMANG’ app on your smartphone. Open the app and go to EPFO section. There click on ‘View Passbook’ and enter your UAN number and OTP. From here you can check your balance as well as track the status of your claim.
Big relaxation in PF Withdrawal rules: Now you can withdraw 100% money
Historic change in rules
Keeping in mind the convenience of the employees, EPFO has recently made the strict rules for partial withdrawal from PF very easy. Where earlier there used to be 13 types of complex provisions for different needs, now they have been abolished and only 3 main categories Have been made:
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illness, higher education or marriage
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Housing needs (building or buying a house)
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any other sudden emergency
The biggest relief is that by increasing the limit of withdrawal amount under these three categories, 100% Has been done. That is, now if needed, EPFO subscribers can withdraw 100% of both employee (own share) and employer (company’s share) money deposited in their provident fund through partial withdrawal. With this, employees will not have to worry about their own savings in emergency situations.
