EPFO

# 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.

Months Contributions Calculations Interest Earned
January INR 3500 3500 * 0.7083/100 INR 24.80
February INR 3500 7000 * 0.7083/100 INR 49.60
March INR 3500 10500 * 0.7083/100 INR 74.40
April INR 3500 14000 * 0.7083/100 INR 99.20
May INR 3500 17500 * 0.7083/100 INR 124
June INR 3500 21000 * 0.7083/100 INR 148.80
July INR 3500 24500 * 0.7083/100 INR 173.60
August INR 3500 28000 * 0.7083/100 INR 198.40
September INR 3500 31500 * 0.7083/100 INR 223.20
October INR 3500 35000 * 0.7083/100 INR 248
November INR 3500 38500 * 0.7083/100 INR 272.80
December INR 3500 42000 * 0.7083/100 INR 297.60
Total INR 42000 INR 1934.40

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.

Year Interest Rate
2021 to 2022 8.50% per annum
2020 to 2021 8.50% per annum
2019 to 2020 8.50% per annum
2018 to 2019 8.65% per annum
2017 to 2018 8.55% per annum
2016 to 2017 8.65% per annum
2015 to 2016 8.80% per annum
2014 to 2015 8.75% per annum
2013 to 2014 8.75% per annum
2012 to 2013 8.50% per annum
2011 to 2012 8.25% per annum
2010 to 2011 9.50% per annum
2009 to 2010 8.50% per annum
2008 to 2009 8.50% per annum
2007 to 2008 8.50% per annum
2006 to 2007 8.50% per annum
2005 to 2006 8.50% per annum
2004 to 2005 9.50% per annum
2003 to 2004 9.50% per annum
2002 to 2003 9.50% per annum

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.

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