EPF Interest Rate: The central government has approved an interest rate of 8.25% for EPF (Employees’ Provident Fund) accounts for the financial year 2024-25.
With this approval, EPFO can now begin the process of depositing interest into EPF accounts.
If your EPF account is managed by an Exempted Trust, the same interest rate will apply, and the process will start there as well.
Let’s understand how much interest you will receive, when it will be credited, and whether any delay affects your earnings.
How Much Interest Will You Receive on EPF?
As per Paragraph 60 of the EPF Scheme, 1952, interest on EPF is calculated monthly on your running balance and credited at the end of the financial year.
For example, if your EPF balance on April 1, 2024, is ₹5 lakh and your basic salary is ₹60,000 per month, then you contribute 12% of your salary, which is ₹7,200 per month.
Your employer also contributes ₹7,200, but 8.67% of this (up to ₹1,250) goes to the EPS (Employee Pension Scheme). The remaining part is added to your EPF account.
Over the year, your total EPF contribution will be ₹86,400 (₹7,200 × 12), and your employer’s share, excluding the EPS part, will be ₹71,400.
Interest at 8.25% will be calculated on the entire yearly contribution and the opening balance of ₹5 lakh.
When Will the EPF Interest Be Credited?
Usually, interest is credited at the end of the financial year, but it may take a few months to reflect in your account.
Sometimes, the interest shows up by September or October. You can check your EPF balance and interest status through the EPF passbook website, the UMANG app, or via SMS.
Does a Delay in Crediting EPF Interest Lead to Loss?
No, there is no loss due to a delay in interest credit. Interest is calculated on the yearly average balance, and the full amount is credited, even if it appears later in the account.
How to Check EPF Balance?
If you’re having trouble logging into the EPF passbook website, you can use these alternatives:
UMANG App
SMS Service
EPFO Helpline Number
EPFO Official Website
This is good news for EPF account holders. With the government approving an 8.25% interest rate for 2024-25, the interest will soon be deposited into your account. Just wait a little longer to see it reflected.
