On the deposits made for the year 2021-22 towards the employee provident fund or EPF, the Union Government has approved 8.1 percent of interest rates, reported by PTI. This update is provided after getting approval from the Union Finance Minister, and soon the interest is to be credited into subscriber accounts.
EPF Interest Rate By EPFO
In March, the retirement fund organization EPFO, or Employee’s Provident Fund Organization had slashed the EPF interest rates on the deposits from 8.5 percent to the four decade low of 8.1 percent for the financial year 2021-22.
In the year-wise comparison, this is the lowest EPF interest rate ever offered since 1977-78, employees earned 8 percent interest that year. The retirement fund organization EPFO invests 85 percent of its fund in debt instruments, which includes: “government securities and bonds” and the rest of 15 percent is invested in equity through ETFs. The interest rate payable is decided based on earnings by investing in both debts and equities.
How does EPFO Calculate Interest Pay?
Employees contribute a share of 12 percent of their salary to EPF accounts monthly, and similarly, so do the employers. A total of 24 percent is contributed by both towards the EPF or Employees Provident Fund accounts which are managed by the EPFO or Employees Provident Fund Organisation. After the interest rate for a financial year is approved and the year ends, EPFO makes calculations for the month-wise closing balance according to which the interest rate for the year is also calculated.
Please, note that EPFO does not calculate the interest rate on pension contributions. Out of 12 percent contribution from employees, 8 percent goes into pension corpus. The interest rate is calculated separately for employee and employer shares.
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Here’s How You Can Check Your EPF Account Balance:
You can check PF balance via SMS services, just send EPFOHO UAN ENG to the number 7738299899 through your registered mobile number and replace UAN with your universal account number.
PF balance can also be checked by missed call, just give a call on this number 011-22901406, and you will get a message in return.
Through the EPFO website you can check your PF balance:
- Visit EPFO’s official website.
- Select ‘Our Services’ then click on ‘For Employees.
- A new page will open and you will have to select ‘Member Passbook’.
- Enter your details like UAN and password.
- After login, you will be asked to choose the pf account for which you want to see the passbook.
