EPF Interest Rate 2024: How to Calculate PF Interest Rate, Contribution Rate

Check EPF Interest Rate 2023-24 Online | Calculate PF Interest Rate, Contribution Rate here in this Article – Every year a new EPF interest rate is announced by the EPFO Central Board of Trustees after consultation and debate with the Indian Finance Minister. It is a government-backed retirement savings scheme directed at the salaried employees of the country, under this scheme a certain percentage is contributed to the EPF account by both the employee and the employer. 8.1% PF interest rate has been set by the government for the financial year 2022-2023. In today’s article, we are going to provide you with all the important information related to EPF Interest Rate 2023-24. [Also Read- Driving Licence (DL)| Apply Online Learning Licence at sarathi.parivahan.gov.in]

EPF Interest Rate 2023-24

EPFO Central Board of Trustees announces a new EPF interest rate every year after consultation and debate with the Indian Finance Minister. EPF is a retirement benefit program established by the Employees’ Provident Fund and Miscellaneous Act, 1952, under which equal monthly contributions are made to the program every month by the employer and the employee. This program is looked after by the Employees’ Provident Fund Organization (EPFO), under which the employee gets a lump sum payment on retirement and throughout the service life. Under this payment, both the employee and the employer contribute, under this the interest on both is also included. 

EPF Interest Rate 2023-24 applies to all organizations with 20 or more employees, and some organizations are subject to restrictions and exclusions under the scheme. All eligible citizens will be provided interest under this scheme at the rate of 8.15 percent for 2023-2024, which is approved by the Union Ministry of Labor and Employment. Apart from this, the Central Government has allowed the Ministry of Labor to deposit interest at the rate of 8.15 percent annually for 2021-2022 as per the instructions of the Employees’ Provident Fund Organization (EPFO) office issued on July 24 to each participant in the EPF program. [Also Read- electoralsearch.in | ECI Search Name in Voter List, Electoral Roll PDF]

EPF Interest Rate

Overview of EPF Interest Rate

Article NameEPF Interest Rate
Launched ByBy EPFO Central Board of Trustees
Year2023
BeneficiariesCitizens of the country
Application Procedure—-
ObjectiveDetermining provident fund interest rate by analyzing current market conditions
BenefitsPF interest rate will be determined by analyzing the current market conditions
CategoryCentral Government Schemes
Official Website—–

Check EPF Interest Rate for last 20 years

Financial yearAnnual interest rate (%)
2021-228.10 percent
2020-218.50 percent
2019-208.50 percent
2018-198.65 percent
2017-188.55 percent
2016-178.65 percent
2015-168.80 percent
2014-158.75 percent
2013-148.75 percent
2012-138.50 percent
2011-128.25 percent
2010-119.50 percent
2005-108.50 percent
2004-059.50 percent
2001-049.50 percent
2000-0112 per cent (April-June), July 2001 to 11 per cent

EPF Interest Calculation In a Financial Year

MonthsBasic Pay + Dearness Allowance (Rs.)Employer’s contribution (Rs.)Employee’s Contribution (Rs.)Total Balance at the end of the month (Rs.)Interest earned (Rs.)
140,0003550480083500
240,000355048001670059
340,0003550480025050118
440,0003550480033400177
540,0003550480041750237
640,0003550480050100396
740,0003550480058450355
840,0003550480066800414
940,0003550480075150473
1040,0003550480083500532
1140,0003550480091850591
1240,00035504800100200651 

Important Points of EPF Interest Rate 2023-24

  • EPF deposits made between April 2022 and March 2022 are now subject to the new interest rate of 8.10%.
  • Interest on the Workers Provident Fund account is available only once a year, on 31st March of the respective financial year, while it is calculated every month by the government.
  • Under this, the transferred interest is added to the balance of the next month, the balance for April is then used to calculate the interest.
  • Under this, the EPF account becomes inactive or inoperative in the event that no contribution is made under it for 36 consecutive months.
  • Interest can be paid on inoperative accounts of workers who have not yet attained the age of superannuation.
  • Apart from this, interest is not provided on the money deposited in the inoperative accounts of retired employees under the EPF Interest Rate.
  • No interest will be provided to the employee for the amount paid by the firm towards the Shramik Pension Scheme.
  • On the contrary, under EPF Interest Rate, any person above 58 years of age is given the benefit of pension from this amount. In addition, interest earned on inoperative accounts is subject to taxation at the member’s slab rate.

Details Required to Use pf Interest Calculator

Under this, many details are provided to use the PF interest calculator, some of these essential details are as follows:-

  • Retirement age
  • Monthly EPF contribution in percentage
  • Present age of an employee
  • Current EPF Balance
  • Monthly basic pay
  • Monthly dearness allowance
  • Expectation of increment etc.

Contribution Rate If the Salary of the Employee Does Not Exceed Rs.15,000

Salary of an employee citizen Rs. 15,000/-, in this case the details of contribution from the salary of that employee can be kept as follows:-

  • Employee contribution to EPF: 12%
  • Employer’s contribution to EPF: 3.67%
  • Employer’s contribution to EPS: 8.63%

Contribution Rate if Salary of Employee Exceeds Rs.15,000

If the salary of an employee is more than 15,000, then in this case the details of contribution will be kept as follows:-

  • Employee contribution to EPF: 12%
  • Employer’s contribution to EPS: 8.33%
  • Employer’s contribution to EPF: Balance after deduction of 12% to 8.33% of salary.

Employee and Employer Contribution to EPF

The contribution under this has two parts depending on the organization contributing to the EPF, one is the employer’s contribution and the other is the employee’s contribution. Under this, a contribution of 12% from his basic income and dearness allowance (DA) is made by the employee in his EPF account. On the contrary, the employee will have to make a smaller contribution of 10% if the company has less than 20 employees or is in a certain industry, such as jute, beedi, brick, etc. Additionally, an equal amount (12% of the employee’s basic income + DA) is contributed by the employer under the scheme. 

If the employee’s salary is $15,000 or more, 8.33% of this employer payment, up to a maximum of $1,250 per month, is included in the employee pension plan, with the remaining 3.67% being deposited into the employee’s EPF account. A 0.50% contribution from the company is also received from the company to the employee’s Employee Deposit Linked Insurance (EDLI) account, it is important to note that the employee has the option to contribute more than the minimum statutory amount of 12% voluntarily. This is also known as Voluntary Provident Fund (VPF) contribution and can also be tracked independently. Additionally, in case the employee elects to participate, no contribution is required to be made to the VPF by the employer, along with the VPF tax-free interest is also provided.

EPF Interest Rate Eligibility

  • The benefits of EPF are available to the employees of a company from the day they start working there.
  • Under this, the benefit of EPF can be provided to the employees of a company with at least 20 employees.
  • The benefit of this scheme will not be provided to the residents of Jammu and Kashmir.

Procedure to Use PF Calculator

You can use EPF or PF calculator to determine your net worth till you retire as a result of EPF contribution. Under this, you have to provide some information, such as your age, basic monthly salary, PF contribution in percentage, employer contribution in percentage, estimated average annual increment in percentage, retirement age and interest rate etc. After entering all the information under this, you can get information about how much amount can be saved by you for retirement.

Tax Benefits for EPF

Tax deduction for EPF account holders is allowed under Section 80C of the Income Tax Act, 1961, subject to a maximum of Rs. 1 lakh can be used with the EPF account for tax benefits. Apart from this, if a person contributes to the EPF account for five consecutive years, then in this case the amount saved by the person till this time is tax free. On the contrary, if the tenure of a person’s EPF account is less than 5 years, then in this case the amount deposited will be subject to TDS deduction on withdrawal.

Leave a Comment