Interest Rate on PF

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.

MonthsContributionsCalculationsInterest Earned
JanuaryINR 35003500 * 0.7083/100INR 24.80
FebruaryINR 35007000 * 0.7083/100INR 49.60
MarchINR 350010500 * 0.7083/100INR 74.40
AprilINR 350014000 * 0.7083/100INR 99.20
MayINR 350017500 * 0.7083/100INR 124
JuneINR 350021000 * 0.7083/100INR 148.80
JulyINR 350024500 * 0.7083/100INR 173.60
AugustINR 350028000 * 0.7083/100INR 198.40
SeptemberINR 350031500 * 0.7083/100INR 223.20
OctoberINR 350035000 * 0.7083/100INR 248
NovemberINR 350038500 * 0.7083/100INR 272.80
DecemberINR 350042000 * 0.7083/100INR 297.60
Total INR 42000INR 1934.40
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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.

YearInterest Rate
2021 to 20228.50% per annum
2020 to 20218.50% per annum
2019 to 20208.50% per annum
2018 to 20198.65% per annum
2017 to 20188.55% per annum
2016 to 20178.65% per annum
2015 to 20168.80% per annum
2014 to 20158.75% per annum
2013 to 20148.75% per annum
2012 to 20138.50% per annum
2011 to 20128.25% per annum
2010 to 20119.50% per annum
2009 to 20108.50% per annum
2008 to 20098.50% per annum
2007 to 20088.50% per annum
2006 to 20078.50% per annum
2005 to 20068.50% per annum
2004 to 20059.50% per annum
2003 to 20049.50% per annum
2002 to 20039.50% per annum


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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