- The Employees’ Provident Fund Organisation (EPFO) has retained the 8.25% annual interest rate for FY 2024-25, the same as last year.
- Interest is calculated monthly but credited annually, meaning members will see the interest added to their accounts at the end of the financial year.
How to Calculate EPF Interest
EPF interest is computed based on the monthly closing balance in your account. Even though the interest is credited at the end of the year, it is accrued every month.
Example Calculation:
- Opening EPF balance (April 1, 2024) = ₹2,00,000
- Basic salary = ₹40,000
- Employee contribution (12%) = ₹4,800/month
- Employer’s contribution to EPF (after EPS deduction) = ₹3,550/month
- Total monthly EPF deposit = ₹8,350
Using an 8.25% annual interest rate, the total EPF interest earned for FY 2024-25 = ₹20,977.69
The new balance after interest is added will be ₹2,20,977.69, which will then be the opening balance for the next financial year.
Other EPFO Announcements
EDLI Life Insurance Benefit: A minimum of ₹50,000 will be provided if an EPF member passes away without completing one year of service.
Extended EDLI Eligibility: Family members can claim benefits if the EPF member dies within six months of their last contribution.
Eased Service Requirement: Up to two months of job gap will now be counted as continuous service for insurance benefits.
Want to estimate your EPF interest? Keep an eye on your monthly contributions and use this formula to track your savings growth!
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