Are you a salaried Employee? Do you contribute a portion of your monthly salary towards Employees’ Provident Fund (EPF)? Are you aware that your employer also contributes a matching amount towards your EPF account? Do you know about the various components of your employer’s PF contribution? Are you aware of ‘how interest is calculated on your monthly subscriptions to Provident Fund?
I was in need of the EPF statement to resolve all the above queries and answer them in a simple and easy to understand manner. Since I am a self employed individual, I can’t contribute to Employees provident Fund and do not have online access to EPF UAN (Universal Account Number) member portal. (You can view or download your EPF statement online @ EPFO’s UAN Member Portal)
Many thanks to one of my good friends for sharing his latest employees’ provident fund statement and that has helped me in preparing this post. Before analyzing the EPF statement and how EPF’s interest is calculated, let us first understand the various components of EPF.
Latest Update (Budget 2021) : Interest on EPF Contributions above Rs 2.5 lakh is Taxable | Budget 2021
What are the Components of my Employees Provident Fund (EPF account)?
If you take out your monthly pay-slip and check, you can understand that every month 12% of your “salary” is contributed towards EPF account. Your total monthly contribution is routed towards Employees’ Provident Fund.
Your employer also contributes 12% of the salary to your EPF a/c. But your employer’s monthly contribution is routed towards various components of PF.
Out of this 12% of your employer’s monthly contribution, 8.33% goes towards EPS (Employees Pension Scheme) and only 3.67% is invested in Employees’ Provident Fund (EPF). So, you contribute 12% of your basic salary and your employer contributes 3.6% of your basic salary towards EPF deposits.
What are the new amendments made to EPF & EPS schemes?
Below are the amendments/changes made to EPFO’s EPS scheme in August 2014. (EPFO is Employees’ Provident Fund Organisation)
Kindly note that the above figures are for minimum contributions. Check your pay-slip or EPF statement to know about your employer’s and your contribution percentages.
Understanding the components/sections in EPF online Statement:
Before explaining to you about the calculation of interest on EPF deposits, let us understand few relevant points regarding the interest calculation.
Let us now understand how the interest is calculated on EPF deposits. Let us consider the same EPF statement as the one given above. My friend had joined in his first job in a Private Limited company in September 2012. His company contributes 8.33% of his Basic salary as “EPF deposit” (Rs 239 pm) every month and 3.67% towards the EPS scheme (Rs 541 pm). (The 12% is subject to minimum of Rs 6,500 in 2012-13). His contribution was 12% of Rs 6,500 which was Rs 780 pm.
Let me put all these figures in MS excel and calculate the total interest earned on EPF deposits from September 2012 to end of March 2013.
Let me now explain about the calculation part. In the month of September 2012 the interest amount was zero because the available EPF balance was zero in the month of August 2012.
In Oct 2012, Rs 7.2 was the interest earned for September’s monthly contribution. We need to consider September month end balance (Rs 1019) and EPF applicable interest rate ( it is 8.5% in 2012-2014) divided by 12 months (we are calculating monthly interest amount). We need to repeat these calculations till March 2013. The total accumulated interest was Rs 152 and was credited on 31/Mar/2013 (as shown in EPF statement).
The total interest amount of Rs 152 was added to April month’s balance, along with the monthly deposits. Even after the recent amendments to minimum contribution amount, the interest calculation procedure has not changed.
So, suggest you to try these calculations based on your monthly Provident Fund deposits and understand how is interest calculated on your Provident Fund Account. (Leave your query if you need any assistance).
Latest news (March 2021) : EPF interest rate for 2020-21. The Central Board recommends 8.50 % rate of interest to its subscribers for the year 2020-21. EPFO notifies 8.5% as interest Rate on EPF for the year 2020-21.
The previous FYs EPF interest rates are as below;
This post was last modified on July 10, 2023 6:13 pm
Filing your Income Tax Return (ITR) is not just about meeting deadlines—it’s about choosing the…
Retirement planning in India is often misunderstood. Many people think any long-term savings or investment…
You’ve probably seen the same property quoted at different prices. One person says ₹60 lakh,…
Buying insurance is easy. Getting your claim settled—that’s where the real test begins. For any…
Gifting immovable property—like land, plots, or houses—is super common in India. Families often do it…
Most people believe that investing alone is enough to create wealth. But in reality, many…
This website uses cookies.
View Comments
Dear srikant
If I leave my organisation on march and don't withdraw my EPF till may 2015. Will I get interest for fy 2015-16 from my present company.??
Dear aditya..Yes, you will get interest. Interest is paid by EPFO and not by the employer.
Dear Sir,
Thank you so much for your clarification on PF (Employee and Employer Part)
But still i have dought on Pension (that is 8.33% of employer part):- please clarify me--
Q1. As i can see in your screnshot 1) there is NO interest amount added by end of financial year to the pension amount, why its so?
Q2. Did we get pension amnt transferd/withdrawled when we do the PF transfer/withdrawle:-- again as you mention in another screen shot about the transfer money-- there is NO money mentioned in pension part.
Please clarify me.
Dhananjay
Dear Dhananjay,
To get EPS money you need to submit separate pension withdrawal form. The above calculation is for EPF only.
I worked for 9 month for an IT firm in Hyd (June 14 to Apr 15) and then moved to Bangalore and joined new company. I got my UAN from new company. How do I transfer my Hyd pf amount to present account. when I checked my pf balance, I get message as records not available and it shows in the site as last updated 12 Dec 14. I want to check the balance before transferring the amount.
Also please let me know if I can withdarw money if possible.
Thanks,
karthik
Dear Karthik,
If you have a smartphone, you can download EPF mobile APP and check the balance.
As you are currently employed, you have to transfer your old epf ac monies to your new EPF account. You can map the old account to your UAN.
Read my articles;
All about UAN.
EPF A/C online transfer procedure.
Mr. Ragavendra
I worked in an org for about 9 continued years. I quit recently and have not withdrawn my PF amount. Is it safer option to leave the amount in pf office for it to fetch interest or should I withdraw? Since I worked more than 5 years I am sure my amount will not be taxed. Secondly what happens to the EPS amount of 1250 set aside for all these months or years? Will it be given as well or is there any other clause attached to it?
I should have addressed Mr.Srikanth. ...sorry about that...
Dear Anand,
You need to submit separate EPS withdrawal form. Check with your Ex-employer if you have not submitted it.
If you are currently not employed, you may withdraw EPF monies and can invest in other better investment avenues based on your Financial goals and profile.
Hi Thanks for detailed info. I hv one question? recently i hv changed my company and transferred all my pf amount from old account to new account. Amount along with interest is now transferred in my account, but even after 2 yrs I am only getting interest on the contribution I am making in my new company. No interest has been given for the amount trasferred from my old PF account to new account. Is there any rule pertaining this? I was under impression that old PF amount will be added up as carry fw balance for next yr to calculate interest. Pl clarify.
Dear atharva,
It should be carried forwarded, interest is calculated on the total accumulated balanced (old + current contributions).
How to check EPS balance ?
Dear Venu..You may have to contact EPFO office to check EPS balance.
Sir,
In my EPF Account my existing balance is RS. 140000 including employer share i want to withdraw some amount how much i can withdraw.
Dear MANJUNATH,
Suggest you to kindly read my article : EPF partial withdrawals - options & guidelines.
Thanks for the detailed information.
I have PF worth 90K. I have done service in a company "X" for 4years ,8 months and quit the job in jan 2015. I'm not continuing with any job for next 2-3 years.These are my questions:
a)If I keep the money in PF account for 3 years, will it earn interest?
b)Since I do not have 5 years of continuous employment, will it be taxed?
c)When we withdraw PF, will the pension fund also be given?
Please suggest , if it is good to keep in PF account for another 3years or withdraw the money.
Thank you!
I have a similar query.
I worked continuously in a company for 4 years 10 months and quit in May 2015. I am not employed right now. Since the withdrawal guidelines state that 2 months of unemployment is necessary, would that account for 5 years in total (4.10 years+ 2 months) and would withdrawing after 5 years make it non-taxable ?
Also, is it advisable to withdraw the amount right now when I am not employed as it falls in the 20% tax bracket and would be my only source of income so would bring the tax down to a great extend (given I earn nothing currently) or to keep it till the time I can.
Dear Sana,
I believe that as your contributions are for 4.10 years, TDS can be applicable.
The decision to withdrawal is dependent on your requirements. If you do not have any obligations , suggest you to withdraw and invest in some other better investment options as per your financial goals.
I have seen my EPF statement and understand the details of what employee and employer has contributed in last 7 years of my service. My question is how can i get the information about any money added because of the govt interest rates/schemes. I don't see that in the statement.
I was planning to withdraw all money from my account and keeping it in FD for more benefits as i was not able to understand the benefit of keeping money in EPF. Please advise.
Dear Sonika,
You can find entries related to 'Interest amount credits' in the PF statements. Are you currently employed?
Kindly read my article : Avoid investing in RDs/FDs for long-term.
Thanks for your reply. Yes, i am currently employed and after going through the statement i thought where are the interest rates and thought may be idea of FD is better. There are no columns of interest credits in the statement and there is only monthly credited amount mentioned and there is no mention of interest credit. There is one additional row annually "Int. Updated upto 31/03/2013"; is it the interest rate and the row you are talking about?
Dear Sonika...Yes, it is 'int udpated..'...
If you are currently employed..you have the options to withdraw EPF money partially..
If service is complete 10 years but employer not update epf last 10 month at that time employee is eligible for under 10 years epf withdrawal please guide us
Dear Raju..I am unable to understand your query..