GUIDESPERSONAL FINANCE
How to Calculate Interest on Your EPF Contribution?
3 MIN • 
LAST EDITED BY SABA MALAIKA ON JULY 29, 2025.
LAST EDITED BY SABA MALAIKA ON JULY 29, 2025.
GUIDES LAST EDITED BY SABA MALAIKA ON JULY 29, 2025.
EPF is a retirement savings scheme for Indian employees managed by EPFO. The EPF interest rate is determined annually by the CBT based on market conditions, investment performance, and surplus availability.
The EPF interest rate is determined annually by the EPFO's Central Board of Trustees (CBT) in consultation with the Ministry of Finance and other stakeholders. This rate is based on factors such as market conditions, investment performance, and surplus availability.
The EPF interest rate for the financial year 2023-24 remains unchanged at 8.15%, the same as the previous year and lowest in seven years. The rate for the financial year 2022-23 was also low at 8.10%, the lowest in four decades.
EPF interest credit transfers interest to your account at the end of the financial year. Interest is calculated monthly but credited yearly in April or May. Interest is compounded annually and added to your principal amount for next year's calculation. To check if interest was credited to your account, visit EPFO's website or use the UMANG app with your UAN and password. Check your EPF balance and passbook online, via SMS, or missed call service. Contact your employer or EPFO if interest is not credited.
The EPF interest rate for the financial year 2023-24 has been sanctioned at 8.15% by the Union Ministry for Labour and Employment, which was approved by the Central Government. This increase is due to the EPFO's investments performing better than expected in the equity and debt markets. The government aims to maintain an attractive rate of return for the salaried class during the COVID-19 pandemic's impact on jobs and incomes.
The EPF interest is the amount of money that you earn on your EPF contribution every year. It is calculated as a percentage of your opening balance for each month and compounded annually. The formula for calculating the EPF interest is as follows:
EPF Interest = Opening Balance (EPF Interest Rate / 12)
For example, if your opening balance for April 2022 is Rs.1 lakh and the EPF interest rate for 2022-23 is 8.15%, then your EPF interest for April 2022 will be:
EPF Interest = Rs.1 lakh (8.15% / 12) = Rs.679
Similarly, you can calculate your EPF interest for each month and add them up to get your total EPF interest for the year. You can check your EPF passbook online to see if your EPF interest credit date has been updated and how much interest you have earned for the last financial year.
To manage your retirement savings, it is important to calculate the EPF interest rate on your contributions. Understanding the EPF interest rate, calculation method, and crediting time is crucial for financial planning. You can use online tools to track your account details and EPF interest rate earnings. Remember, EPF interest rate is not only for retirement income but also a tax-saving tool.
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The current interest rate for EPF contribution for the financial year 2023-24 is 8.15%. This rate is applicable for all deposits made from 1st April 2023 to 31st March 2024.
EPF interest is calculated monthly using the step method: multiplying the monthly balance by the interest rate and dividing by 12. For instance, if the balance is Rs. 10,000 and interest rate is 8.15%, then the interest for that month is (10,000 x 8.15%)/12 = Rs. 67.92.
Interest on EPF contribution is credited to the account at the end of the financial year. EPFO calculates monthly closing balance and interest is calculated based on this balance. The total interest for the year is added to the account balance in March.
Check your EPF interest online by logging in to the EPFO portal or using the UMANG app. Use your UAN and password to access your account details and download your EPF passbook to view monthly contributions and interest earned.
You may withdraw interest on your EPF contribution before retirement for specific reasons, such as unemployment, medical emergency, education, marriage, house purchase or construction. To claim partial or full withdrawal, submit relevant forms and supporting documents.
