Latest PF interest rate & its procedure to calculate [Updated 2021-22]
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Latest PF interest rate & its procedure to calculate [Updated 2021-22]

In this post, we will look at the latest PF interest rate and how it has changed over the years. Also, we will discuss the detailed procedure of calculating the PF interest rate.

Latest PF interest rate [2021-22]

EPFO sets interest rate at 8.1% for 2021-22, lowest in over one decade 

Latest fiscal, EPFO had given 8.5% interest rate.

The Employees’ Provident Fund Organisation (EPFO) on Saturday decided to pay 8.1 percent rate of interest on provident fund deposits for the current financial year 2021-22.

This is lowest in over one decade and likely to disappoint over 60 million of its salaried class subscribers.

Current PF interest rate [Feb 2021-22 update]

The Employees’ Provident Fund Organisation (EPFO) has declared that interest will be applicable at the rate of 8.1% for FY 2021-22. That will affect more than 60 million PF members, who will be getting a lower percent interest than the previous year when it was 8.5% (FY 2019-2020 to 2020-2021). This is also the lowest rate of interest over the last 10 years.

Change In PF Interest Rates Over Years

The PF interest rates keep changing every year. In the below graph, you can see the EPF rate history over one decade.

The latest financial year, FY 2021-22, is the lowest since FY 2012-13, when it was 8.1%. 

PF interest rate

Calculation of PF Interest Rate

The monthly PF contribution get accumulated, and it will also earn interest over time in your PF account. In the section, we will also see how you can calculate the monthly PF interest.

Let us first know how to calculate interest in the EPF contribution.

The calculation of the actual interest received depends upon the salary of an employee and also on the break-up of employer’s PF contribution.

  • Contribution by an employee – Contribution towards EPF is deducted from the employee’s salary. This is 12% of the basic salary of the employee.
  • Contribution by an employer The contribution made by the employer is 12% of the basic salary of the employee. However, this is divided into:
    • Employee Pension Scheme (EPS) – 8.33%
    • Employee’s Provident Fund (EPF) – 3.67%

As we all know, if Basic+DA is less than Rs.15,000 then both the employer and employee contribution will be the same. If it exceeds Rs.15,000, then you have an option either contribute based on the original amount or restrict the calculations to Rs. 15,000.


Now let us see, for example, Siddharth who has just joined the organisation in June at a monthly salary of Rs 12,000 (Basic+DA). We will calculate the interest on his EPF earnings. We can see the monthly deductions and applicability of interest in the table below.





1440440.41880.4Nil Just joined










13162.8*8.1%/12=Rs 88.85




(Total EPF at the end of the year)



So, the total interest Siddharth had received for his EPF contributions from June to March is Rs.456.97.

The interest on EPF is calculated for every month and given at the end of the financial year.


  • The employer shows the EPF contributions with respect to the salary due.
  • Interest amount received on EPF is rounded off to the nearest point before crediting it to your EPF account.
  • In the unfortunate event of a death of an employee, the interest is payable till the month preceding the month in which death occurred.

Details required for PF calculation 

If an employee wants to calculate PF, then they require the following details – 

  1. Current PF balance as opening balance
  2. Monthly EPF contribution
  3. Rate of PF interest 

Through all these details, you can calculate your PF amount to reveal the total interest that you would receive at the time of retirement. We hope you found it helpful.

So, we have come to an end of this post regarding the detailed procedure of calculating PF interest rate and change in interest rates. We hope you found it helpful.

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If you have any doubts or queries kindly drop them in the comment section below.


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  • i have worked in 3 organizations
    Company A – 50000 PF balance for duration of (2013-2015)
    Company B – 35000 PF balance for duration of (2015-2017)
    Company C – PF Not Available for duration of (2017-2018)

    i just joined the company with PF component so can you please brief how interest calculation will be done ?

    thanks in advance.

  • Will I get the same rate of interest if I contribute more than 12% as employee contribution to my EPF account?

    • Sir,
      Yes, the interest rate will be the same for the contribution made over and above 12%.

  • hello sir
    i have left my last job in the year 2017 June , from that time i am not working , what is the pattern of interest i will receive , will i get interest till june 2017 , or shall i get interest till july 2018 , the day i claimed my pf amount .
    Also for final pf settlement , i have worked in 3 companies all have deducted pf but did not joined combined my uan , in last company before quitting i linked all the pf account into my last pf account .
    So i am not sure how much interest i will gain , suppose on june 2017 my total pf accumulated was 75,000+35,000 pension . will i get interest @ 8.55% for 75,000 from june-2017 to july 2018 , or it shall be limited to june 2017.
    means how should i calculate the interest on final pf settlement , when no pf is credited to my pf account from last one year .

    • Hello sir,
      1. PF amount will be taken up to last working day.
      2. Regarding interest calculation it will be up to Jun -2017 only and interest rate will be that of FY 2017-2018

  • Whether in case any one drawing salary of 20000 and his basic salary is Rs 6000 then PF needs to be paid on Rs 6000 or in Rs 15000?

    • Dear Sir,
      The PF contribution is on Basic + DA. Hence, the PF will be on 6000 and DA if available.

  • If I get cheque of rs. 3526 per month . How much will be the part of Employer and emloyee at their interest rates ?

    • Dear Sir,
      PF is applicable at 12% on your monthly BASIC + DA. Employer and Employee will be contributing equally to this.
      When computing interest, the declared rate will be applicable on whole of employee share and 3.67% of employer share
      i.e. if every month you contribute Rs. 1000 your employer too will contribute Rs. 1000. The interest will be calculated on 1000+367=1367.

  • To which period is the EPF interest announced in feb 2018 (8.55%) applicable? Is it retrospectively applicable from Apr 2017 to March 2018? If so members who would have retired in say Sept 2017 would have their interest calculated at what rate? It would not have been 8.55% as it was announced in Feb 2018.

    • Hello Sir,
      For the FY 2017-18 the interest will be calculated on 8.55%. So for a person who retired in Sept 2017, it would be the same i.e., 8.55%.

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