The Union Ministry for Labour and Employment has approved to credit interest at 8.15 percent to the Employees' Provident Fund (EPF) scheme for 2023-24. According to an Employees' Provident Fund Organisation (EPFO), the labour ministry has conveyed the approval of the central government to credit interest at 8.15 percent per annum for 2021-22 to every member of the EPF scheme.
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"The Ministry of Labour and Employment, Government of India, has conveyed the approval of the Central Government under para 60(1) of Employees' Provident Fund Scheme, 1952 to credit interest at 8.15 percent for the year 2022-23 to the account of each member of the EPF Scheme as per the provisions under Para 60 of EPF Scheme, 1952. You are accordingly, requested to issue necessary instructions to all concerned for crediting the said interest to the members' accounts," the circular said.
EPF interest contribution
The interest rate is officially notified in the government gazette after approval of the Ministry of Finance, following which EPFO credits the rate of interest into its subscribers’ accounts
EPF contribution is credited to the account on a monthly basis, and interest is computed every month. However, the total interest for the year is credited at the end of the financial year. The EPF interest for FY23 is still awaited and should be credited now.
Here's a look at the historical rates of EPF:
| Financial Year | Interest rate |
| 2022-2023 | 8.10% |
| 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% |
| 2011-2012 | 8.25% |
| 2010-2011 | 9.50% |
| 2005-2006 to 2009-2010 | 8.50% |
(Source: Clear)
EPF interest rate calculation
Going by the rule, the interest here is calculated by adding the monthly running balance, multiplying it by the interest rate, and dividing it by 1,200. The EPFO calculates the month-wise closing balance and then the interest for the whole year.
Now, if an employee withdraws a certain sum from the account, then interest from the beginning of the year till the last date of the month preceding the month in which the withdrawal took place is considered. So, the closing balance for the year will be: Opening balance + contributions - withdrawal (if any) + interest.
Checking EPF balance
Once the EPF interest is credited, subscribers can check the same by taking note of their Provident Fund (PF) balance. This can be done by logging in to the official website, sending a text message ‘EPFOHO UAN ENG’ to 7738299899, giving a missed call at 9966044425, or downloading and using the UMANG App.
First Published: Jul 24, 2023 1:50 PM IST
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