**Epf interest Rate 8.55% in epfindia – using Pf calculator check your Pf interest Online in simple manner..**

PF interest rate 2017-2018 : Employees’ Provident Fund Organisation (EPFO) has reduced **PF interest rate** on deposits to 8.55 % for the financial year 2017-18. EPF is a compulsory program in which each and every salaried employee needs to participate with an equal contribution from their organizations.

The main aim of this program is to provide a sustainable number of employed citizens to save their salary for their retirement phase. Employees can calculate the amount of interest in their **EPFO Portal** which they are going to receive at the time of retirement.

Recommend to you read : Check your epf balance Statement Online

## EPF interest rate calculation:

At present, the **PF interest rate is 8.55%** that is going to be applicable on **EPF contributions** made by the employee and the employer. The actual interest received at the end of the retirement depends upon the two factors. One is the salary of the employee and the other is the break-up of employer’s **PF contribution**. To calculate the amount you are going to receive, you need to get a better understanding of the EPF contribution structure.if you can **pf balance check without uan number**

**Different phases of EPF contribution:**

The contribution of EPF is distributes into two phases:

1. The contribution made by the employee:

12% of the basic salary of the employee is deduct for the EPF contribution.

2. The contribution made by the employer:

The employer will also make 12% of the basic salary of the employee towards the EPF contribution.

Pf interest calculator : CHECK EMPLOYEE’S PROVIDENT FUNDS ONLINE

## How to calculate the PF interest rate?

If you want to calculate the amount of the money which you will collect after the retirement, then you can follow the below procedure.

To get a better understanding of the **EPF interest calculation**, let us the following example. An employee joined a new organization with a salary of 10,000(basic+DA).

- Employee’s contribution towards EPF=12%*10000=1200/-
- Employer contribution towards EPF=3.67%*10000=367/-
- Monthly balance at the end of the month=0+1567=1567/-
- Interest applicable=Nil. Joined new.
- Monthly balance at the end of the next month=1567=1567=3134/-
- Interest applicable for next month=1567*8.75%/12 = Rs.11

Therefore the total the employee is going to receive if he/she joins in the month of June is Rs. 410.03 i.e., the EPF contributions received by the employee from June to February.

## Things need to remember while calculating the EPF interest:

- The EPF contributions of an employee are shown by the employer according to the due of salary.
- The amount of interest you are going to receive on EPF is always rounded off to the nearest decimal before the amount gets credited into your EPF account.
- In case of an unfortunate event of the death of an employee, the EPF interest will be paid till the month previous month in which the death occurred.

## How to use a PF calculator :

Provident Fund (EPF) calculator will help you to calculate the amount of money you will accumulate on retirement.

If you find the process of calculation difficult, then you can choose the online **EPF calculator**. To do this, you just need to visit the **https://economictimes.indiatimes.com/wealth/calculators/employees-provident-fund**

- Click on the start button.
- Enter your present age and retirement age in the desired places and click on the next symbol.
- After that, enter your basic monthly salary and click on the next symbol.
- Enter the average annual increase in salary which you expect it to be.
- Enter your contribution to the EPF i.e., 12%.
- Your employer contribution to the EPF i.e., 3.67%.
- Enter the rate of interest on your EPF.
- Now you will be able to see the accumulated amount you are going to receive by the time you retire. That’s it! You can easily get the amount by using this simple EPF interest rate calculator.

**Recent changes in the EPF contributions:**

Each and every employee must contribute 12% of his/her basic salary towards **Epfindia** as a statutory mandate. The amount of matching contribution will also be made by the employer. But in the union budget in 2018, there have been changes to the contributions of newly recruited female employees. The EPF contribution had reduced from 12% to 8% for the new female employees. This benefit will be available for the first three years and after that, they need to continue with the12% EPF contributions.

**My Conclusion is:**

Remember that the interest of EPF you will receive will depend on the salary you are receiving. The final amount may also vary in the increment of annual salary from your organization.

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