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 [2019 update]

The Employees’ Provident Fund Organisation (EPFO) has updated the PF interest rate applicable for the FY 2018-19 is 8.65%. In the previous Financial Year, the PF interest rate was 8.55%.

Change in PF Interest Rates Over Years

The PF interest rates also keep changing every year. In the graph below, you can see the EPF rate history over the past 6 years.

The Financial Year 2017-18 had the lowest PF interest rate (8.55%) since the Financial Year 2012-13 (8.5%). However, both Financial Year 2016-17 and current Financial Year have a PF interest rate of 8.65%.

According to the opinion of EPFO, there would be an excess of Rs.151,67 crore because of implementing PF interest rate as 8.65% for the current FY 2018-19.

Change in PF interest rate over years

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.

June1440440.41880.4Nil Just joined
(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.493.58.

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.

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.



  • 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%.

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