Manager - Human Resource
Income Tax, Sales Tax, Insurarnce, Epf &
Assistant Engineer, Indian Telephone Industries,
Training & Development, Hr Generalist
First thing is that, Interest on PF is not 9.5 %. It is 8.5%.
now lets come to your query, first you understand that, employees contribution (means 12%) directly goes in Provident fund a/c. but,
Employer's contribution (13.61%) is divided in to 5 part as mentioned below..
1) 8.33% goes in Pension Fund
2) 3.67% goes in Provident Fund
3) 0.50 % goes in EDLI (Employees Deposit Link Insurance)
rest 1.61 % divided in Admin Charges
1) 1.10% Admin charges on PF A/c
2) 0.01% Admin charges on EDLI a/c
If you see you annual PF slip carefully, So, you will found that, Provident Fund amount details only mentioned in annual slip, it means not mentioned the Pension amount details.
Interest rate of PF is calculate on employees contribution as well as Employer Contribution. So, you are getting the interest on both contribution.
That the reason, it is wonderfull to you, its showing more than you expection. for your information, your some more money (Other than mentioned in annual PF slip) is safe in Pension Fund.
In further you can withdra you PF as well as Pension amount also. but EDLI amount is not be reimbursment, It can be use only, IF you not register in ESIC, & if you meet any accident in further (Sorry to say that), you will be get the benefit of same. EDLI is like a Insurance.
If you want to know any thing else, Please let me know...
From India, Mumbai
I think the EPF Dept has calculated your Interest in the right way. I can show you the calculation statement if you provide the following information
1) Your date of Joining
2) Your monthly salary (Basic + DA ) during the slip period
3) Your monthly EPF deduction ( Normally it must be 12 % of your Basic + Da)
Tax & EPF Consultant
From India, Thiruvananthapuram
Please provide formula for calculation of Interest on Provident Fund on my contact no-9773447965
My contribution to pf was Rs.4326 & employer contr was Rs.1323 I got Int of Rs.130 & 40 respectively for 2006-2007 dt of joining-27.04.06
My basic was
MonthBasic12%3.67%Apr-063464213May-063000360110Jun-063000360110Jul-063000360110Aug-063000360110Sep-063950474145Oct-063950474145Nov-063950474145Dec-063950474145Jan-073950474145Feb-073950474145 36,046 4,326.00 1,323.00
I will be great help
From India, Mumbai
THe interest for EPF is computed on a reducing balance method
The attached file will compute the same for you
You may use this for your reference
You can change the year or copy paste the entire sheet to another and rename the year
pls mail me at for any clarification
The interest rates are
16.11.95 to 31.3.2000 - 12%
1.4.2000 to 31.3.2001 - 11%
1.4.2001 to 31.3.2005 - 9.5%
1.4.2005 to 31.3.2010 - 8.5%
1.4.2010 onwards - 9.5%
Salary Ceiling limits
16.11.95 to 31.5.2001 - 5000
1.6.2001 onwards - 6500
Extend the rows as per requirement and enter applicable salary, interest rate & ceiling limit.
From India, Bangalore
Deviprasad's sheet has helped me to understand how the PF Interest part will be calculated. But Interest part will be calculated in a pro - rata basis? for an example if an employee joins on 13th of Feb, will the Interst part calculate in a pro - rata basis? Pls confirm.
From India, Kakinada