EPF Interest Rate 2024: Current Rates and How to Calculate
Reviewed by: Fibe Research Team
- Updated on: 16 Apr 2025
The Employee Provident Fund, or EPF, offers all employed individuals retirement benefits. For the Financial Year 2022-23, the Employees’ Provident Fund Organisation (EPFO) has announced that the interest rate will be 8.15% p.a.
Read on to know more about this EPF rate and its calculation.
Table of Contents
- An Overview of the EPF Interest Rate in 2024
- How to Calculate the EPF Interest?
- Tabulation of EPF Rates for the Past 20 Years
- FAQs on the EPF Rate of Interest
- How to calculate the EPF interest?
- Which is better, an EPF or FD?
- What is the highest EPF interest rate?
- How is EPF calculated on salary?
- How much is the PF deduction from salary?
- What is the interest rate of EPF in the last 10 years?
An Overview of the EPF Interest Rate in 2024
Here are some key points you should know:
- The Union Ministry for Labour and Employment notified an interest rate of 8.15% for the FY 2023-24
- It will apply from April 1, 2023, to March 31, 2024
- The interest on your EPF account is calculated on the monthly closing balance and then computed for the entire year
- EPFO deposits the interest on your Employee’s Provident Fund account only once during a particular fiscal year
- No interest is paid in accounts where no contributions have been made for the last 36 months
How to Calculate the EPF Interest?
You need the following details to calculate the EPF interest:
- The current balance of the EPF account
- Retirement age
- The current age of an employee
- Monthly basic pay along with the dearness allowance
- Percentage contributed towards the EPF account
By investing in this scheme, you can earn a cumulative interest at the end of a year. To help you understand the calculation, consider this example.
| Particulars | Amount |
|---|---|
| Interest rate | 8.15% / 12 = 0.679% |
| First-month interest on the EPF contribution | Nil |
| EPF balance at the end of the first month | ₹10,750 |
| EPF contribution for the second month | ₹10,750 |
| Total amount accumulated after two months | ₹21,500 |
| Interest accrued by the end of the second month | ₹145.985 (₹21,500 x 0.679%) |
| EPF contribution for the third month | ₹10,750 |
| Amount accumulated by the end of the third month | ₹32,250 |
| Interest accrued | ₹218.997 (₹32,250 x 0.679%) |
This way, you can calculate interest for all months in a particular fiscal year and the total EPF balance. You can also use an interest calculator to get quicker and error-free estimates. However, remember the following when computing your balance:
- The wage ceiling or the salary limit for PF is ₹15,000
- If your salary limit for PF contribution exceeds this ceiling, the employer can restrict the contribution to 12% of your basic salary or DA.
Also Read: How To Invest Your EPF Savings?
Tabulation of EPF Rates for the Past 20 Years
Here is a table of the interest rates provided under this scheme during the last 20 years:
| Financial Year | Annual Interest Rate (%) |
|---|---|
| 2022-23 | 8.15% |
| 2021-22 | 8.10% |
| 2020-21 | 8.50% |
| 2019-20 | 8.50% |
| 2018-19 | 8.65% |
| 2017-18 | 8.55% |
| 2016-17 | 8.65% |
| 2015-16 | 8.80% |
| 2014-15 | 8.75% |
| 2013-14 | 8.75% |
| 2012-13 | 8.50% |
| 2011-12 | 8.25% |
| 2010-11 | 9.50% |
| 2009-10 | 8.50% |
| 2008-09 | 8.50% |
| 2007-08 | 8.50% |
| 2006-07 | 8.50% |
| 2005-06 | 8.50% |
| 2004-05 | 9.50% (9% plus 0.50% Golden Jubilee Bonus) |
| 2003-04 | 9.50% |
It is also important to note that you generally can’t withdraw from an EPF account unless for the reasons outlined by the organisation. Thankfully, with Fibe’s Instant Personal Loans, you don’t have to worry about it. You can get up to ₹5 lacs for your urgent or planned needs at affordable interest rates.
You can get these funds with ease because the eligibility criteria are simple and the documents required are basic. Download our Personal Loan App or visit our website to get funds in minutes.
FAQs on the EPF Rate of Interest
How to calculate the EPF interest?
Follow these steps to compute returns on an Employee’s Provident Fund account:
- Add the monthly balances
- Multiply the amount with the applicable interest rate
- Divide it by 12 to know the monthly interest amount
You can also use an EPF interest calculator for quick and accurate estimates. The tool is free, and you just need to enter the contribution details.
Which is better, an EPF or FD?
Fixed deposits offer better flexibility and convenience and you can customise a plan as per your goals. On the contrary, the investment in EPF is more restricted because there are penalties applicable if you choose to withdraw before the declared period. However, it is a long-term investment option that can help you accumulate a significant corpus by retirement. So, the better option between the two depends on your investment goals.
What is the highest EPF interest rate?
The highest rate was 12%, which was applicable from 1989 to June 2001.
How is EPF calculated on salary?
Here is how the Employee’s Provident Fund on salary:
- It is calculated on salary with the employee’s and employer’s contributions as 12%
- An employee’s contribution includes their basic pay along with DA
- The employer’s contribution is split as 8.33% to the Employee Pension Plan and 3.67% is added to the Provident Fund
How much is the PF deduction from salary?
A total of 12% of the basic pay and DA is deducted from an employee’s salary.
What is the interest rate of EPF in the last 10 years?
Here is a tabular overview of Employee Provident Fund rates for the past decade:
| Financial Year | Interest (% p.a.) |
|---|---|
| 2022-2023 | 8.15% |
| 2021-2022 | 8.10% |
| 2020-2021 | 8.50% |
| 2019-2020 | 8.50% |
| 2018-2019 | 8.65% |
| 2017-2018 | 8.55% |
| 2016-2017 | 8.65% |
| 2015-2016 | 8.80% |
| 2013-2015 | 8.75% |
| 2012-2013 | 8.50% |
