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.



  • 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.

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