Both the employee and the employer have a contribution in the Provident Fund account. In this, 24 percent of the basic and dearness allowance together are deposited. Every year the government pays interest on the deposits in the EPF account. In the festive season, a bumper gift is about to come for the employed people. The interest amount will be deposited in their PF account just before Diwali.
New Delhi: Before Diwali, there is a good news for the employed people. In the festive season, a bumper gift is about to come for the employed people. The interest amount will be deposited in their PF account just before Diwali. Employees’ Provident Fund Organization (EPFO) is soon going to deposit 8.1 percent interest in the account of its members. The interest amount will be directly credited to your EPF account.
Interest is not available on the entire money
Both the employee and the employer have a contribution in the Provident Fund account. In this, 24 percent of the basic and dearness allowance together are deposited. Every year the government pays interest on the deposits in the EPF account. But many people do not know how interest is calculated in EPF account. It is generally understood that interest is earned on the entire money deposited in the Provident Fund. but it’s not like that. No interest is calculated on the amount that goes into the pension fund in the EPF account.
How is the calculation done?
Interest is calculated on the basis of the monthly running balance that is deposited in the EPF account every month. However, it is credited on an annual basis. According to the rules of EPFO, if there is any withdrawal from the balance on the last date of the financial year, then 12 months interest is deducted after deducting it. EPFO always takes the opening and closing balance of the account. In this, the monthly running balance is added and multiplied by the rate of interest / 1200.
How to see PF account balance
You can check PF account balance through message from your mobile. For this, you have to send SMS by writing EPFOHO to 7738299899 from your registered mobile number. Apart from this, you can also check balance by making a missed call on 011-22901406 from your registered mobile number.
