8.25% interest rate on EPF balance for FY 2024-25 got final nod from Govt: Check how it will impact your EPF balance
According to a PTI report, the central government has approved an interest rate of 8.25% for Employees' Provident Fund (EPF) account holders for FY 2024-25. The interest rate has been ratified following the EPFO's recommendation to the central government.
With this official confirmation, the EPFO can now start the process of crediting interest to the EPF account holders. Further, if your EPF account is held with an exempted trust, then the EPF trust can also follow the process of crediting interest on balances held during the financial year 2024-25.
ET Wealth online tells you how much interest you will get on your EPF balance, when the interest will start reflecting in your EPF account, and if you lose any interest on the EPF account due to a delay in EPF credit.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
2 ingredientes para remover as manchas na pele
Conselhos E Truques
Undo
How much EPF interest will be credited to your account?
Para 60 of the EPF scheme 1952 defines the rule for calculating the interest for the EPF account. As per the scheme rules, interest is calculated on the monthly running balance and is credited at the end of the financial year.
To know how much interest will be calculated on your EPF account balance, it is important to know your and your employer's contributions to the EPF account.
Live Events
Here is an example to understand this. Suppose your EPF balance is Rs 5 lakh on April 1, 2024. This includes previous EPF contributions and interest earned on them. During the FY 2024-25, your basic monthly salary was Rs 50,000. As per the EPF scheme rules, an employee contributes 12% of the basic salary to the EPF account, and the employer also makes the matching contribution.
Hence, you will deposit Rs 6000 per month. Your employer will also make a matching contribution of Rs 6000. However, the full amount will not go into your EPF account. Out of the employer's contribution, 8.67% will go to the Employees' Pension Scheme (EPS) typically with a limit of Rs 1,250 per account, and the balance will go to the employee's EPF account. Your employer's monthly contribution to the EPF account will be Rs 4,750.
The interest accrued to your EPF account varies monthly. This will be calculated as follows:
Month
EPF deposit (In Rs)
EPF deposits for interest calculation (In Rs)
Monthly interest (In Rs)
Apr-24
10750
510750
3511.41
May-24
10750
521500
3585.31
Jun-24
10750
532250
3659.22
Jul-24
10750
543000
3733.13
Aug-24
10750
553750
3807.03
Sep-24
10750
564500
3880.94
Oct-24
10750
575250
3954.84
Nov-24
10750
586000
4028.75
Dec-24
10750
596750
4102.66
Jan-25
10750
607500
4176.56
Feb-25
10750
618250
4250.47
Mar-25
10750
629000
4324.38
Total EPF interest in FY 2024-25
47014.69
For FY 2024-25, the interest of Rs 47,014.69 will be credited to your EPF account.
When will the EPF interest be credited to your EPF account?
Crediting of EPF interest generally takes a long time. Usually, EPF interest is credited to the latter part of the year. EPF account holders should check their accounts to know the status of the interest credited to their accounts.
Generally, logging in to the EPF Passbook website is difficult. If you are facing issues logging in to your EPF account, you can use alternative methods to check the EPF balance.
Also Read:
EPF Passbook website not working? Check EPF balance via missed call and SMS
Do you lose any interest if there is a delay in the crediting of interest?
In previous instances, the Employees Provident Fund Organisation (EPFO) has clarified that there would be no interest loss for the EPF members.
EPFO amended the rules in November 2024 to minimise the loss of interest to EPF members in case of EPF claim settlement. As per the new rules, an EPF member will get the interest on the EPF balances till the date of settlement instead of till the preceding month earlier.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fashion Value Chain
19 minutes ago
- Fashion Value Chain
Why Bajaj Finserv Personal Loan is Your Best Option for Low Interest Loans Up to Rs. 55 Lakh
For customers planning a destination wedding, covering unexpected medical bills, or managing multiple financial obligations, finding the right credit solution is essential. In today's competitive lending market, many are seeking low-interest loans with fast processing and flexible terms. The Bajaj Finserv Personal Loan stands out as a top choice-offering high-value loans with unmatched convenience and reliability. Bajaj Finserv Personal Loan A Personal Loan Designed Around the Customer's Needs With the increasing demand for quick and collateral-free financing, the Bajaj Finserv Personal Loan provides a seamless borrowing experience. Eligible individuals can avail of loans of up to Rs. 55 lakh, with instant approval and disbursal within 24 hours*, making it one of the most efficient financing solutions available. Top Reasons to Choose Bajaj Finserv Personal Loan High Value Loan : Customers can borrow up to Rs. 55 lakh to cover a variety of personal needs-ranging from home upgrades to education expenses or even emergency situations. Fast Processing: The personal loan application process is fully digital, offering instant approval and quick fund disbursal within 24 hours* of verification. Flexible Repayment Tenure: Borrowers can choose a repayment plan with a tenure of up to 96 months, giving them the flexibility to manage EMIs according to their monthly budget. Minimal documents: Personal loan documents required depend on the customer profile – and can include KYC documents, income proofs and so on. Multiple Loan Variants Bajaj Finserv offers three different personal loan types, allowing applicants to pick the format that best fits their financial habits: â Term Loan Full amount disbursed at once Fixed EMIs through the tenure Prepayment charges applicable Flexi Term Loan Interest charged only on the amount withdrawn Multiple withdrawals without reapplying No extra charges for part-prepayment Flexi Hybrid Term Loan Interest-only EMI option up to the first 24 months Option to withdraw funds as needed No extra charges for part-prepayments No Collateral or Guarantor Required: The loan is completely unsecured, which means applicants are not required to pledge any asset or arrange for a guarantor. Simple Eligibility Criteria Bajaj Finserv Personal Loan is available to a broad customer base with the following basic eligibility: Nationality : Indian Age : Between 21 years and 80 years* (*Higher age limit at the end of the loan tenure) Profession : Salaried or self-employed individuals CIBIL Score : 685 or higher Employment: Must be working with a public, private, or multinational company A Trusted Lending Partner As one of India's leading non-banking financial companies, Bajaj Finserv has built a reputation for responsible lending and customer-first service. From the streamlined application to transparent charges, every aspect of the loan process is designed to ensure customer satisfaction and ease. How to Apply Applying for a Bajaj Finserv Personal Loan is quick and entirely online: Visit the official Bajaj Finserv website Enter basic details to check if you have a pre-approved offer Fill up the form and do the KYC Customer representative will connect with you for further process. This process ensures that eligible customers can access much-needed funds without delays or complicated procedures. *Terms and conditions apply Bajaj Finance Limited Bajaj Finance Ltd. ('BFL', 'Bajaj Finance', or 'the Company'), a subsidiary of Bajaj Finserv Ltd., is a deposit taking Non-Banking Financial Company (NBFC-D) registered with the Reserve Bank of India (RBI) and is classified as an NBFC-Investment and Credit Company (NBFC-ICC). BFL is engaged in the business of lending and acceptance of deposits. It has a diversified lending portfolio across retail, SMEs, and commercial customers with significant presence in both urban and rural India. It accepts public and corporate deposits and offers a variety of financial services products to its customers. BFL, a thirty-five-year-old enterprise, has now become a leading player in the NBFC sector in India and on a consolidated basis, it has a franchise of 69.14 million customers. BFL has the highest domestic credit rating of AAA/Stable for long-term borrowing, A1+ for short-term borrowing, and CRISIL AAA/Stable & [ICRA]AAA(Stable) for its FD program. It has a long-term issuer credit rating of BB+/Positive and a short-term rating of B by S&P Global ratings. To know more, visit
Business Standard
21 minutes ago
- Business Standard
India GDP growth slows to 6.5% in FY25
India's economic growth slowed to 7.4 per cent in the January-March period, and pulled down the annual growth rate for 2024-25 to a four-year low of 6.5 per cent, mainly due to the manufacturing sector, official data showed on Friday. The growth in the January-March period was lower than the 8.4 per cent expansion in the year-ago quarter. The size of the Indian economy rose to Rs 330.68 lakh crore or about USD 3.9 trillion and set the stage for achieving the USD 5 trillion target in the next few years. In the previous 2023-24 fiscal year, the economy grew 9.2 per cent.
Time of India
21 minutes ago
- Time of India
Gold rises Rs 100 to Rs 98,600/10 g; silver stays flat
New Delhi: Gold prices rose Rs 100 to Rs 98,600 per 10 grams in the national capital on Friday due to a pick-up demand by the jewellers and retailers, according to the All India Sarafa Association. The precious metal of 99.5 per cent purity climbed Rs 100 to Rs 98,100 per 10 grams (inclusive of all taxes). In addition, silver prices remained flat for the second straight session at Rs 1,00,000 per kg (inclusive of all taxes) on Friday. On the global front, spot gold dipped by USD 21.91 per ounce or 0.66 per cent to USD 3,295.82 per ounce. "Gold is trading steady near USD 3,320 per ounce, with investors' focus shifting to upcoming US Core Personal Consumption Expenditures (PCE) data, University of Michigan inflation expectations, and consumer sentiment," Kaynat Chainwala, AVP Commodity Research at Kotak Securities, said.
