EPFO Interest: If you are employed and deposit money in your Employees’ Provident Fund (EPF) account for your future, then this news is very important for you. For working people in India, PF is a reliable savings. Small amounts are deposited every month and over time, this accumulates into a substantial fund. But many people do not know how much interest is being added to their PF account each year and how it can be checked from home.
The government is also considering increasing the interest rate for the new financial year (2025-26), which could be great news for millions of employees. The EPFO has retained the 8.25% interest rate for the financial year 2024-25. This rate is applicable for the second consecutive year. This interest is added to the amount deposited in the PF account during the year at the end of the same financial cycle. The next interest rate decision is expected to be made at the EPFO meeting around February 2026.
Conditions to become an EPFO member
Currently, the upper salary limit for joining the EPFO scheme is Rs 15,000. This means that employees with a basic salary of up to Rs 15,000 and DA are compulsorily enrolled in the PF. A change in this limit is being considered to allow more people to benefit from the pension system. The change could strengthen the future pensions of many private sector employees.
Know how PF is deducted from salary?
1. 12% of the employee’s basic salary and DA goes into PF.
2. The employer’s 12% contribution is divided into two parts.
3. 8.33% EPS (Pension Scheme)
4. 3.67% EPF (Provident Fund)
A limit has been set on the amount to be deposited into the pension fund so that the fund remains stable and everyone continues to benefit over a long period of time. Now the million dollar question is, will the government soon increase the interest rate of EPFO? So far, the government has not provided any information on this matter.