I want to know how PF interest is calculated. Suppose at the beginning of the month, my basic is Rs 1000, then in each month, how much money will I get monthwise? Please tell me.
1. Opening balance of EPF = Rs. 100/=
2. Current interest rate = 8.5% per annum.
3. Total amount at the end of EPF year (March-Feb) = 100 x 1.088390905 = 108.81
4. Own contribution per year = say Rs. 25
5. Employer contribution per year = say Rs. 25
6. Then EPF closing balance = (25 + 25 + 108.81) = Rs. 158.81.
The above calculations will be accurate with less than a 0.5% variation.
S. Jaikrishnan
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