EPFO Interest Rate Hike: EPFO declares 8.25% as EPF interest rate for FY 2023-24 (2024)

FAQs

EPFO Interest Rate Hike: EPFO declares 8.25% as EPF interest rate for FY 2023-24? ›

In February this year, the Employees' Provident Fund Organisation (EPFO) said the interest rate for the financial year 2023-24. The EPFO increased the interest rate to 8.25% for 2023-24 from the previous year's rate of 8.15%. The rate revision decision impacts millions of EPF members across the country.

It is worth remembering that EPFO on Feb 10, 2024 fixed an interest of 8.25 percent for 2023-24. The interest rate for the preceding year (2022-23) was 8.15 percent whereas for 2021-22, the rate stood at 8.10 per cent, the lowest since 1977-78 when the rate of interest was 8 percent.

EPFO fixed the interest rate at 8.25% for 2023-24 on February 10, 2024. The interest rate for the previous year (2022-23) was 8.15%, while for 2021-22, the rate was 8.10%, the lowest since 1977-78 when the rate was 8%.

The circular, dated June 14, 2023, is applicable for an eligible employee. The circular from the Employee Provident Fund Organisation (EPFO) on June 14, 2023, applies to employees who are eligible for a higher EPS pension but don't have proof of joint request/undertaking/permission.

Employees Provident Fund Organisation (EPFO) has started settling claims at the latest interest rate of 8.25 per cent per annum to outgoing members, it said in a series of posts on X. “EPFO has already started settling claims @ 8.25 per cent per annum.

To calculate the interest on your EPF, you employ the step method: multiply your closing balance at the end of the month by the current PF interest rate and divide by 12.

Interest is compounded annually and added to your principal amount for next year's calculation. To check if interest was credited to your account, visit EPFO's website or use the UMANG app with your UAN and password. Check your EPF balance and passbook online, via SMS, or missed call service.

The current PPF interest rate is 7.1% (Q2 of FY 2024-25), the minimum investment tenure is fixed at 15 years while the investment amount can range between Rs. 500 to Rs. 1.50 lakh in a financial year.

What is the status of EPFO? ›

EPF Withdrawal Rules 2023

Under the new regulations, PF account holders can withdraw money equivalent to three months of their basic salary plus dearness allowance or 75% of the net balance in their EPF account, whichever is lower.

The EPF Interest Rate for 2024 is fixed at 8.25%.

This rate is valid for all EPF contribution made from 1st April 2023 to 31st March 2024. The EPF interest is calculated monthly on the EPF contributions but deposited into the EPF account only on 31st March of the applicable financial year.

How much pension you will get in EPS is calculated based on a formula. This formula is- EPS = Average Salary x Pensionable Service/70. Here average salary means basic salary + DA. Which is calculated based on the last 12 months.

Ans : No. The Employees' Provident Fund Contribution should be paid till the date of his leaving the service, irrespective of the age of the member. Employees who ceases to be EPS(pension) member will get Employers 8.33% contribution in PF.

KWASA DAMANSARA, 3 March 2024: The Employees Provident Fund (EPF) Board today announced a dividend rate of 5.50% for Simpanan Konvensional, with a total payout of RM50. 33 billion; and 5.40% for Simpanan Shariah, with a total payout of RM7.

PETALING JAYA: A higher dividend rate may be on the cards for 2024, surpassing last year's 5.5%, as the Employees Provident Fund's (EPF) first-half distributable income surged by 29%. EPF has grown its distributable income to RM36. 7bil in the first six months of 2024 (6M24) from RM28.

How much pension you will get in EPS is calculated based on a formula. This formula is- EPS = Average Salary x Pensionable Service/70. Here average salary means basic salary + DA. Which is calculated based on the last 12 months.