Current EPF Interest Rate 2022-23
The current EPF interest rate for FY 2022-23 is 8.15%. The following table will give you get an idea of the diversity or stability of EPF interest rates over the years:
| Financial Year | Annual Interest Rate (%) |
| 2022-23 | 8.15% |
| 2021-22 | 8.10% |
| 2020-21 | 8.50% |
| 2019-20 | 8.50% |
| 2018-19 | 8.65% |
| 2017-18 | 8.55% |
| 2016-17 | 8.65% |
| 2015-16 | 8.80% |
| 2014-15 | 8.75% |
| 2013-14 | 8.75% |
| 2012-13 | 8.50% |
| 2011-12 | 8.25% |
| 2010-11 | 9.50% |
| 2005-10 | 8.50% |
| 2004-05 | 9.50% |
| 2001-04 | 9.50% |
| 2000-01 | 12% (April-June), 11% from July 2001 |
The interest rate on EPF is reviewed annually. EPF interest rate for FY 2022-23 is 8.15%. Once EPFO notifies the interest rate for a financial year and the year ends, interest rate is calculated for the month-wise closing balance and then for the entire year.
The year in which the new interest rates are announced stays valid for the next financial year i.e. from the year starting on 1st April of one year to the year ending on 31st March of the next year. Here are a few important facts to know about EPF Interest Rate:
- The rate of interest i.e. 8.15% is valid and will be applicable only on EPF deposits made between the months of April 2022 and March 2023.
- The interest, even though calculated on a monthly basis, is transferred to the Employees’ Provident Fund account only on a yearly basis on 31st March of the applicable financial year.
- The transferred interest is summed up with the next month i.e. April’s balance and is then again used for calculation of the interest.
- If the contribution is not made into an EPF account for thirty-six months continuously, the account becomes dormant or inoperative.
- Interest is offered on inoperative accounts of employees who have not attained the retirement age.
- Interest is not provided on the amount deposited in inoperative accounts of retired employees.
- The interest earned on inoperative accounts is taxable as per the member’s slab rate.
- For contributions made towards the Employees’ Pension Scheme by the employer, the employee shall not receive any interest. However, a pension is paid out of this amount after the age of 58.
EPF Interest Rate Calculation
| Contribution Start Month | April 2022 |
| Interest Rate (p.a) | 8.15% |
| Monthly Interest Rate | 8.15/12 = 0.679% |
| Employee’s Contribution | 12% of Rs. 15,000 = Rs. 1,800 |
| Employer’s Contribution | Rs. 1,800 (8.33% in Pension, 3.67% in EPF) |
| Employer’s Actual Contribution to EPF account | 3.67% of Rs. 15,000 = Rs. 550 |
| Total Monthly Contribution in EPF account | Rs. 1800 + Rs. 550 = Rs. 2,350 |
The balance calculation for the next month (May) will be done in the given manner:
- Balance carried forward from April 2022= Rs. 2,350
- Interest earned for the month of April 2022 = Rs. 15.95
- Balance at the end of May 2022 = Rs. 2,350 + Rs. 2,350 = Rs. 4,700
Note: Although interest has been earned in April 2022, it will be credited at the end of the financial year on 31st March 2023.
The employer and employee make equal contributions to the EPF account as shown below.
| Contribution by | Monthly Percentage Contributed |
| Employer | 12% |
| Employee | 12% or 10% |
| Total | 24% |
Key Points about EPF Contribution:
- 12% Employer’s contribution includes 3.67% EPF and 8.33% EPS
- 10% EPF share is valid for the organizations where there are 20 or less than 20 employees /organizations with losses incurred more than or equal to the net worth (at the end of financial year) /organizations declared sick by the Board for Industrial and Financial Reconstruction
- Total contribution made by the employer is distributed as 8.33% towards Employees’ Pension Scheme and 3.67% towards Employees’ Provident Fund.
- All contributions are updated in the EPF member passbook
- The contribution made by the employee goes totally towards the provident fund of the employee.
- Apart from the above-made contributions, an additional 0.5% towards EDLI has to be paid by the employer.
- Certain administration costs towards EDLI and EPF standing at the rate of 1.1% and 0.01% respectively also have to be incurred by the employer. This means that the employer has to contribute a total of 13.61% of the salary towards this scheme.
Employee’s Contribution towards EPF
In general, the contribution rate for the employee is fixed at 12%. However, the rate is fixed at 10% for the below-mentioned organizations:
- Organizations or firms employing a maximum of 19 workers
- Industries declared as sick industries by the BIFR
- Organizations suffering an annual loss much more as compared to their net value
- Coir, guar gum, beedi, brick and jute industries
- Organizations operating under the wage limit of Rs. 6,500
The minimum amount of contribution to be made by the employer is set at a rate of 12% of Rs. 15,000 (although they can voluntarily contribute more). This amount equals Rs. 1,800 per month. It means that both the employer as well as the employee has to contribute Rs. 1,800 each per month towards this scheme. Initially, this amount was set at 12% of Rs. 6,500, which would equal Rs. 780 to be contributed by both the employer and the employee.
- The contribution from both the parties is deposited into the EPFO (Employees’ Provident Fund Organisation)
- This is a long-term investment fund for the contributors which helps them continue an independent life after retirement
Follow the process given below for EPF registration:
- Visit the Employees’ Provident Fund Organisation (EPFO) website
- Go to the section of ‘Establishment Registration’ that opens up a new page with ‘Instruction Manual’. It will explain the process of Employer Registration, followed by registration of DSC [Digital Signature Certificate] of the Employer which is a prerequisite for fresh application submission.
- Accept ‘I have read the instruction manual’ tickbox to proceed and fill in the details to register.
- An email e-link is sent which is to be activated and a mobile PIN is also sent. You need to upload certain documents to register.
- Those who are already registered can log in using their Universal Account Number (UAN).
EPF UAN Activation Online
To avail facilities of EPF online, one has to activate UAN through the EPF member login portal. In order to activate your UAN, follow the steps given below:
Step 1: Visit the member website of EPF i.e. EPF e-SEWA/EPF Members Portal
Step 2: Click on the “Activate UAN” option present in the right corner of the page
Step 3: As the EPF member home dashboard opens up, enter your UAN/member ID along with your Aadhaar number, name, date of birth, and mobile number according to EPFO records
Step 4: Enter the captcha code and get an authorization PIN on your mobile number registered with EPFO
Step 5: Use the One Time Password (OTP) to validate and activate the UAN online
Step 6: Another message will be sent to confirm the activation of the UAN
Step 7: Once UAN is activated, you can log in using it to check the status of the Provident Fund
Steps to Update EPF KYC Online
Step 1: Visit EPF Members Portal and log in using UAN & Password
Step 2: As the new page opens up, under the section of ‘Manage’, click on KYC from the dropdown menu
Step 3: Update the details like name and number of PAN, Aadhar, Bank documents, etc.
Step 4: Save it and it will show as Pending KYC as long as it is verified from the other end