If you work and every month a part of your salary is stored in PF for the future, then it is a relief and good news for you. Employees Provident Fund Organization (EPFO) has also approved 8.25% interest rate for FY 2024-25. This is the same rate that was also given last year. That is, this time too, as much interest is added to your EPF account. This decision will benefit crores of employees across the country.
Through this news, we will tell you in detail how much interest can be added to your EPF account, how is it calculated and when will this interest appear in your account.
1. How much EPF interest will be deposited in your account?
Interest on EPF is calculated under Para 60 of Employees Provident Fund Scheme, 1952. According to this rule, interest on the current balance of your account is calculated at the end of every month and this interest is deposited in your account at the end of the entire financial year.
For example, if the total balance in your EPF account on 1 April 2024 is Rs 5 lakh, including earlier confusion and interest, and your monthly salary is Rs 50,000, then 12% of both you and your employer will contribute to EPF. That is, every month you will deposit Rs 6,000 and your company will also give Rs 6,000. However, the full contribution of the employer does not go to your EPF account.
Out of this, 8.67% share goes to the Employees Pension Scheme (EPS), the maximum limit of which is Rs 1,250 per month. The remaining amount i.e. Rs 4,750 is deposited in your EPF account every month. The contribution of about Rs 57,000 throughout the year accumulates on behalf of you and the employer, which increases the total deposits and interest on it.
Interest will be calculated at the rate of 8.25% annually on this deposit, which will be added to your account at the end of the financial year.
2. When will EPF interest appear in your account?
Many employees are eager to know when the EPF interest will come to their account. Generally, after the EPF interest is finished, ie after March, after March, the account is inserted into the account in the last quarter of the year. This means that in most cases this interest is credited between August to October.
Although the interest calculation runs the entire financial year, it only appears in your passbook when it is entered by EPFO. Sometimes this update is also delayed due to technical reasons, so the account holders should keep checking their EPF account from time to time.
3. Easy ways to check EPF balance
Many times it becomes difficult to log on to the EPFO website or the passbook is not updated due to technical reasons. In such a situation you can check your EPF balance in the following ways:
Through UMANG app: This is a government mobile app from where you can get all the information related to EPF.
Through SMS: Send EPFOHO UAN ENG from registered mobile number to 7738299899.
Missed call: Missed calls on 9966044425 from registered mobile number.
EPFO’s website: www.epfindia.gov.in Go on and log in in the passbook section.
Through these methods you can easily know how much your EPF balance is and when the interest amount is connected.
