Provident Fund EPF Interest Rate : The central government has approved giving 8.25% interest to EPF account holders for the financial year 2024-25. After this decision, EPFO can now start the process of depositing interest in EPF account.
If your EPF account comes under an Exempted Trust, then the process of giving interest at the same rate will be started there too. Let us know how much interest will you get on EPF? When will this interest be visible in your account? Do you lose interest due to delay in this or not?
How much interest will you get on EPF?
As per Para 60 of the EPF Scheme (Employees Provident Fund) 1952, EPF interest is calculated on the running balance of every month and is credited to the account at the end of the year.
Suppose the total balance in your EPF account on 1 April 2024 is Rs 5 lakh. Your basic salary is Rs 60,000 per month. You deposit 12% of your salary every month i.e. Rs 7,200. Your employer also deposits Rs 7,200. But out of this amount of the employer, 8.67% goes to EPS (Employee Pension Scheme), which is a maximum of Rs 1,250. The remaining balance comes into your EPF account.
In this way, in the whole year, your contribution to EPF will be Rs 86,400 (7,200 × 12) and the employer’s contribution will be Rs 71,400 (excluding Employee Pension Scheme contribution). Interest will be calculated on this entire amount and the existing Rs 5 lakh at the beginning of the year at the rate of 8.25% annual interest.
When will EPF interest be credited to the account?
Usually EPF interest is credited at the end of the financial year, but its credit is delayed in the account. Sometimes interest credit is visible only by September or October. Account holders are advised to check the status of their EPF account through the EPF passbook website or UMANG app or SMS.
What is the loss due to delay in EPF interest?
No, delay in credit of EPF interest does not cause any loss to the account holders. Interest is calculated on the average balance of the entire year and the full interest is received even if it is visible after a few months.
How to check EPF balance?
If you are facing problem in logging into EPFO passbook website, you can try these options.
UMANG App
SMS Service
EPFO Helpline Number
Official website of EPFO
This is good news for EPFO account holders that the government has approved the interest rate of 8.25% for 2024-25. Now the account holders just have to wait a bit, the interest will be added to their account soon.
