Interest Rate on PF

Last Updated : April 15, 2022, 5:13 p.m.

You might be aware of the fact that Provident Funds comprises the employee and employer’s contributions. The organization makes these contributions every month to the PF account. But the EPFO adds a certain amount of money to these contributions. This addition is known as Interest. Therefore, you should know the current interest rate on PF. Currently, the rate of interest on the provident fund you receive every year is 8.5% per annum of the accumulated funds. The amount of contributions is also different from each other that the employer and the employee makes. So, let’s move on to the calculation process of interest on your accumulated provident funds.

Interest Rate Calculation on PF

The PF interest rate is 8.5% per annum. You will receive the interest in your PF account on a monthly basis Suppose your organization is making a monthly contribution of INR 3500 from 1st January then you can see how much interest you can earn in a year.

If you divide the interest rate of 8.5% by 12 then you will earn a monthly interest of 0.7083% per month. In the table given below, you can see the amount of interest you will earn in your PF contributions.

So, if your organization is making a contribution of INR 3500 per month then you can earn an interest of INR 1934.40 on PF. As per the prevailing rate of interest on PF of 8.5% per annum, you can earn this amount of interest. You can even have the PF Balance check to know the amount of interest the EPFO adds to your account.

PF Interest Rate in the Last 20 Years

Here, you can compare the interest rate of the last 20 years.

Conclusion

So, you know the interest rate on PF and it is 8.50% per annum. It might change in the future because EPFO decides the interest rate. You can see the interest that was given to you in the last 20 years. It will be easy for you to know the rate of interest at which you are receiving a certain sum of money from EPFO since your joining.