How to Calculate PF Interest - Why no interest for Pension Contribution?

Hi all,
Interest rate of EPF a/cs being hiked from 8.55% to 8.65%. Notification awaited.

The EPFO sent out instructions to all regional offices to supply detailed working sheet of settlement from EPF a/cs. Read the circular attached.

I am not understanding how Pf is calculated so please do anyone help me?

Hi Mrunali,
PF is calculated on Basic salary of the Employee
Employee contribution 12% and Employer contribution 12% (3.67% - EPF and 8.33% - Pension)
Employee contribution - 12/100*8000 - 960/- per month
Employer contribution - 3.67/100*8000 = 293.6
- 8.33/100*8000 = 666.4
- 960 /- per month
Regards

Hi Mrunali,
PF is calculated on Basic salary of the Employee
Employee contribution 12% and Employer contribution 12% (3.67% - EPF and 8.33% - Pension)
For example Basic salary - 8000/-
Employee contribution - 12/100*8000 - 960/- per month
Employer contribution - 3.67/100*8000 = 293.6 , 8.33/100*8000 = 666.4 then Employer PF 12% = 960 /- per month
Regards

Epf interest calculated on simple interest basis or compound interest basis. Is there any rule/circular/notification in this regard.