EPFO Interest Rate Update: Calculate Your PF Interest For 2025 Easily

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Only recently, the Employees’ Provident Fund Organisation (EPFO) has declared the interest rates for the financial year 2024-25. These rates correspond to the rate at which EPF retirement savings grow for a set of salaried employees. In this article, an update on the EPF interest rates will be given, the methodology on how PF interest is calculated, and how to check the balance.

EPF Interest Rates For 2025  

According to the most recent news, the EPF interest rate for the financial year 2024-25 is being maintained at 8.25 percent, which was the same floor rate in the previous financial year. The interest is credited to an EPF member’s account balance every year.  

PF Interest Calculation For 2025 

Annual compounding of EPF interest forms the basis upon which PM interest is calculated on the closing balance of every month. The steps to understand this concept follow:  

  1. Getting your EPF Balance- Your EPF balance is your share plus the employer’s share (except for the part being contributed towards the Employees’ Pension Scheme – EPS).
  2. Interest Rate Applied: Interest is payable on the closing balance every month, which is then considered for the entire year for accounting.
  3. Formula Interest Credits: 

   \text{CREDIT_interest_amount} = \text{(Opening_Balance + Contributions) × Interest_Rate ÷ 12}

Repeat for Every Month: In the subsequent months, interest calculated this way accumulates, and by the end of the year, interest is earned on the entire amount.  

Example Calculation  

Assume EPF was started on 1st April 2024 for about ₹5,00,000 and a contribution of ₹5,000 was made every month.  

  • Monthly interest = (₹5,00,000 + ₹5,000) × (8.25% ÷ 12)  
  • Monthly interest = ₹3,484 
  • Total interest by end of year is approximately ₹41,808.  

How To Check Your EPF Balance?

You can check your EPF balance using any of the methods below:  

  1. UMANG App- Download the UMANG app, log in with your UAN, and check the balance. 
  2. EPFO Portal- Go to epfindia.gov.in and log in using the UAN and password.
  3. Missed Call and SMS- Just give a missed call to 9966044425 or SMS EPFOHO UAN ENG to 7738299899.  

Also Read: PF Withdrawal Rules: You Can Withdraw Under These 5 Conditions

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