Curious About Your PF Account? What's the Current Annual Interest Rate?

Hi All,

I have to inquire about the PF interest rate. Can anyone please tell me what's the annual rate of interest for a PF account.

Hi,

Please refer to this link: [Employees' Provident Fund rate will not change in the financial year 2009-2010 | Tax Guru](http://www.taxguru.in/general-info/employees-provident-fund-rate-will-not-change-in-financial-year-2009-2010.html)

Muninder

EPF interest rate remains unchanged at 8.5% for 2009. Kindly refer to the link: [EPF interest rate remains unchanged at 8.5% - Savings News - Savings Centre - Personal Finance - The Economic Times](http://economictimes.indiatimes.com/personal-finance/savings-centre/savings-news/EPF-interest-rate-remains-unchanged-at-85/articleshow/4171156.cms).

Thanks,
GK

Hi,

The PF contribution is 12% of the basic salary from both the employee and the employer. For the calculation, the maximum limit of basic is Rs. 6500/-. It means that even if the employee's basic salary is above Rs. 6500/-, the employer is liable to contribute only on Rs. 6500/-, which is Rs. 780. However, if an employee desires, he may voluntarily contribute more than 12%. Additionally, an employer has to pay some administration charges. I will explain the various accounts of the PF challan.

A/c No 1: PF Contribution Account A/c No 2: PF Admin Account A/c No 10: EPS Account A/c No 21: EDLIS Account A/c No 22: EDLIS Admin Account

PF admin charge = The employer has to pay 1.1% of the basic EDLIS: The employer has to pay 0.5% of the basic EDLIS admin charge: The employer has to pay 0.01% of the basic

The total additional percentage the employer has to pay is 1.61% of the basic. So, the employer actually has to pay 13.61% of the basic, and the employee has to pay only 12% of the basic.

The employee's complete 12% goes to the PF account for withdrawal, while the employer contributions' 8.33% goes to the Pension fund, and 3.67% goes to the PF fund.

Hope that helps! Regards, Shilpa

The gentleman asks you, what is the interest rate of PF (Provident Fund) account, not the contribution of PF.

At present time 8% 1140283]

Hi All,
I have to enquire about PF interest Rate. Can anyone please tell me whats the annual rate of interest for a PF account. [/QUOTE]

Corrected Version:

At present, the interest rate is 8%.

Hi All,

I have to inquire about the PF interest rate. Can anyone please tell me what the annual rate of interest is for a PF account?

Thank you.

[QUOTE=Dr. G.P. Kimothi;1141981]
At present, the annual PF interest rate is 8.5%.
Hi All,

I have to inquire about the PF interest rate. Can anyone please tell me what the annual rate of interest for a PF account is?

PF annual interest may vary from year to year and will be decided by the Central Government. This year, for 2009-2010, the interest rate will be 8.5%.

P. Karunakaran

Hi Shilpa!

Thanks for the information. I was asked this question in my interview, what are the administrative charges for the provident fund. I could not answer, but now I know after reading your post.

Thanks,
Ravi

Dear Friend,

As per the Annual Account Statement, the interest rate for the year 2009-2010 is 8.5%.

With regards,
Naresh

Hi, please tell me the bifurcation of 12% PF employer contribution. Pension is 8.33%, Admin- 1.61%, and PF- 2.06%. Am I right...

Hi!

The breakdown of the 12% employer contribution is:
- 8.33% towards the pension fund
- 3.67% towards the provident fund

I believe the admin charges are not included in this 12% charge. That is why the employer contribution adds up to 13.11%, i.e., 8.33% + 3.67% + 1.10% + 0.01%.

Regarding PF interest calculation, it is monthly compounding and rounds to the nearest rupee. Currently, it is 8.5% p.a.

However, I shall insert an Excel Sheet in this regard. You can extend the rows (as per your requirement) and enter the salary applicable for PF.

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