"Finance Ministry has agreed to 8.65 per cent rate of interest for financial year 2016-17.
Main points of Calculation of Interest on Employee provident Fund
Main points of Calculation of Interest on Employee provident Fund
1.Interest on EPF amount is charged annually at the prescribed rate for a particular year on basis of month end balance.So no Interest is payable for amount deposited /withdrawal during the month.
- Suppose you have Rs 500000/- balance upto the end month of July,2015 .You have withdraw an amount of 2,00,000 on August 29,2015 .In this case interest from September ,2015 shall be calculated on Balance amount of Rs 300000/- . No Interest on 01.08.2015 to 29.08.2015 shall be given on Rs 200000/-.
- Same is the case of contribution in EPF account ,Interest shall be credited from the succeeding Month.
2. Interest shall be rounded off to multiple of Rupee.
3. Interest rate is notified yearly ,present rate for FY 2016-17 is 8.65%.Complete EPF interest rate chart from 1952 to date is given below.
4. In case of Final Payment Interest shall be credited up to end on preceding month to the date in which final payment is authorised ,whether actual payment is made or not.
5.However ,where final payments are authorised after 25th day of Month or after ,then interest for authorised month shall also be payable.
6. Interest shall not be payable on Inoperative accounts.
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