EPFO Interest Calculation 2023: The interest rate of EPF is determined by the Central Board of Trustees, which is governed by the Employees’ Provident Fund Organisation! Employees’ Provident Fund is the apex decision making body of the scheme to make a big announcement for the subscribers soon! In the CBT meeting to be held on March 12, the interest for the current financial year is often decided. It is expected that interest rates can remain unbreakable at 8.5 per cent. But, it is also discussed that even in difficult times it can be cut on the basis of review of EPFO’s earnings.
EPFO Interest Calculation 2023
The government pays interest on EPF every year on the amount deposited in the Employees’ Provident Fund Organisation’s account. But, is any one PF interest calculated in EPF account!
EPFO account holders generally believe that interest is paid on the entire amount of provident fund deposits. But, this does not happen! There is no calculation of interest on the scheme amount of pension fund in PF account.
EPFO Interest Calculation: EPFO Interest Calculation 2023
EPF Interest Calculation is done on the basis of monthly current balance deposited in EPF account. But, it is decided according to the account at the end of the year! According to the principles of EPFO, if any amount is withdrawn in one year from the outstanding amount on the last date of the current financial year, then interest of twelve months is deducted on it.
Employees’ Provident Fund Organization takes account gap and shutdown balance forever! To calculate this, the monthly running balance is the second and is multiplied by the fee / 1200 per unit.
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once interest is not paid
Once the EPF subscriber leaves the country for good and settles abroad!
If no claim is made for EPF for thirty six months after the end of the job period.
Once the EPF subscriber retires from his job after the age of fifty five years!
When EPF subscriber dies
Withdrawals result in loss of interest
If any amount is withdrawn during the current money year, then the amount of interest (PF Interest Calculation) is taken from the beginning of the year till the month before the withdrawal. The closing balance of the year (EPF balance) will be its difference balance + contribution-withdrawal (if any) + interest.
This is how interest is calculated
- Basic Pay + Dearness Allowance (DA) = Rs 15,000
- Employee’s contribution to EPF = 12% of Rs 15000 = Rs 1800
- Employer’s contribution to EPF = 3.67% of Rs 15,000 = 550.5
- Employer’s contribution to EPS = 8.33% of Rs 15,000 = Rs 1249.5
- Total contribution to EPF account = 1800+550.5= Rs 2350.5
- Contribution to EPF account every month = 1800+550.5 = Rs 2350.5
- This amount will be deposited in the EPF EPF account every month and the prescribed interest rate will be deposited in the account.
EPFO will be given interest at the rate of 0.605 percent every month according to the annual interest rate of 8.1 percent, but it will be deposited on the last day of the financial year.
Now suppose that you have joined office in April 2022, then you will not get interest on the amount deposited in EPF account in April!
In May 2022, you will have Rs 4701 (2350.5+2350.5) in your account and you will get 4701*0.60% = Rs 31.73 interest on it! Similarly, Employees’ Provident Fund Organization interest can be calculated for other months!
This formula is used to calculate
The per unit fee for any year is notified by the government. Interest calculation for the current money year! Finally, Employees’ Provident Fund Organization interest is paid!
The amount of interest is calculated on the balance in that amount on the last date of each month of the year. It is done by adding and dividing the fixed rate of interest by 1200.
14.6 Large Integer Members in Gregorian Calendar Month : EPFO Interest Calculation 2023
Employees’ Provident Fund Organization! Added 14.6 lakh members on real basis in December 2022, which is 16.4 percent of the same amount a year ago. Free on Sundays as per Provisional Notice of Employees Provident Fund Organisation!
That EPFO had added 12.54 lakh members on actual basis during December 2021! 9.11 lakh new members out of total 14.60 lakh customers added on physical basis in December 2022!
The bar is registered under the EPF & MP Act, 1952. It has been said in the statement that the number of members exiting from EPFO is decreasing.
UAN is issued only once
UAN number is very important for any employee. This 12 digit number is issued only once to the registered employee in EPFO. After this, the employee can download his PF passbook and UAN card anytime with the help of this! And the employee can do all the work related to the Employees’ Provident Fund Organization!