The Employee Provident Fund, or EPF, offers all employed individuals retirement benefits. For the Financial Year 2022-23, the Employees’ Provident Fund Organisation (EPFO) has announced that the interest rate will be 8.15% p.a.
Read on to know more about this EPF rate and its calculation.
Here are some key points you should know:
You need the following details to calculate the EPF interest:
By investing in this scheme, you can earn a cumulative interest at the end of a year. To help you understand the calculation, consider this example.
| Particulars | Amount |
|---|---|
| Interest rate | 8.15% / 12 = 0.679% |
| First-month interest on the EPF contribution | Nil |
| EPF balance at the end of the first month | ₹10,750 |
| EPF contribution for the second month | ₹10,750 |
| Total amount accumulated after two months | ₹21,500 |
| Interest accrued by the end of the second month | ₹145.985 (₹21,500 x 0.679%) |
| EPF contribution for the third month | ₹10,750 |
| Amount accumulated by the end of the third month | ₹32,250 |
| Interest accrued | ₹218.997 (₹32,250 x 0.679%) |
This way, you can calculate interest for all months in a particular fiscal year and the total EPF balance. You can also use an interest calculator to get quicker and error-free estimates. However, remember the following when computing your balance:
Also Read: How To Invest Your EPF Savings?
Here is a table of the interest rates provided under this scheme during the last 20 years:
| Financial Year | Annual Interest Rate (%) |
|---|---|
| 2022-23 | 8.15% |
| 2021-22 | 8.10% |
| 2020-21 | 8.50% |
| 2019-20 | 8.50% |
| 2018-19 | 8.65% |
| 2017-18 | 8.55% |
| 2016-17 | 8.65% |
| 2015-16 | 8.80% |
| 2014-15 | 8.75% |
| 2013-14 | 8.75% |
| 2012-13 | 8.50% |
| 2011-12 | 8.25% |
| 2010-11 | 9.50% |
| 2009-10 | 8.50% |
| 2008-09 | 8.50% |
| 2007-08 | 8.50% |
| 2006-07 | 8.50% |
| 2005-06 | 8.50% |
| 2004-05 | 9.50% (9% plus 0.50% Golden Jubilee Bonus) |
| 2003-04 | 9.50% |
It is also important to note that you generally can’t withdraw from an EPF account unless for the reasons outlined by the organisation. Thankfully, with Fibe’s Instant Personal Loans, you don’t have to worry about it. You can get up to ₹5 lacs for your urgent or planned needs at affordable interest rates.
You can get these funds with ease because the eligibility criteria are simple and the documents required are basic. Download our Personal Loan App or visit our website to get funds in minutes.
Follow these steps to compute returns on an Employee’s Provident Fund account:
You can also use an EPF interest calculator for quick and accurate estimates. The tool is free, and you just need to enter the contribution details.
Fixed deposits offer better flexibility and convenience and you can customise a plan as per your goals. On the contrary, the investment in EPF is more restricted because there are penalties applicable if you choose to withdraw before the declared period. However, it is a long-term investment option that can help you accumulate a significant corpus by retirement. So, the better option between the two depends on your investment goals.
The highest rate was 12%, which was applicable from 1989 to June 2001.
Here is how the Employee’s Provident Fund on salary:
A total of 12% of the basic pay and DA is deducted from an employee’s salary.
Here is a tabular overview of Employee Provident Fund rates for the past decade:
| Financial Year | Interest (% p.a.) |
|---|---|
| 2022-2023 | 8.15% |
| 2021-2022 | 8.10% |
| 2020-2021 | 8.50% |
| 2019-2020 | 8.50% |
| 2018-2019 | 8.65% |
| 2017-2018 | 8.55% |
| 2016-2017 | 8.65% |
| 2015-2016 | 8.80% |
| 2013-2015 | 8.75% |
| 2012-2013 | 8.50% |
