EPF Interest Calculation: Know how much interest will you get on Rs 8 lakh, Rs 12 lakh, and Rs 15 lakh EPF contributions?

EPF or employee provident fund is a retirement savings scheme that is available for all salaried employees. This is administered by the employees' provident fund organisation (EPFO). 

The scheme was established under the EPF Act, No. 15 of 1958. The EPF's goal is to ensure the financial security of employees of private sector firms, state-sponsored corporations, statutory boards, and private businesses in their retirement.

EPF is also a tax saving scheme under Section 80C of the Indian Income Tax Act. Under this scheme, both employer and employee contribute 12 per cent of the employee's basic salary every month. 

EPF: Benefits

1. Future savings: The EPF system allows individuals to save money over time.

2. Convenient deductions: Rather than making a substantial, one-time investment, deductions are taken from the employee's monthly income. This enables large savings over a long time.

3. Financial aid in emergencies: The EPF system can give financial assistance to employees in unforeseen situations.

4. Retirement savings: By participating in the EPF plan, individuals may save for their retirement and maintain a comfortable living in their later years.

Interest on EPF

The Employees' Provident Fund Organisation (EPFO) has set the interest rate for the fiscal year 2023-24 at 8.25 per cent, up from the previous year's rate of 8.15 per cent. This judgement affects millions of EPF members around the country.

How much interest will you get on Rs 8 lakh, Rs 12 lakh, and Rs 15 lakh EPF contributions?

Since the interest rate is 8.25 per cent, an Rs 8 lakh EPF contribution will give you Rs 66,000 in interest, and your maturity amount will be Rs 8,66,000 in one year.

Similarly, in one year, If your EPF contribution is Rs 12 lakh, you will get a total interest of Rs 99,000, and the total maturity amount will be Rs 12,99,000.

If your EPF contribution is Rs 15 lakh, you will get a total interest of Rs 123750.00, and the total maturity amount will be Rs 16,23,750 in a year.

Also Read: EPF account: How to correct name and DoB in EPF account; check procedure to avoid issues in fund withdrawal