PF Interest Rates increased to 9.5%

In this article I will explain the changes done by Employees Provident Fund Organization (EPFO) to increase the interest rates of Employee Provident Fund (EPF). It is good news for the employees who are derogatorily saving the money into the PF account.  The debate for this changes has been for nearly six months, finally EPFO has announced this decision Sep 16, 2010.  Read the following sections for more details. If you like the article, please subscribe it here.

EPF Interest Rates

The existing rates for PF account is 8.5% p.a. The interest amount is cumulative for each month. That is the reason why PF is one of the best savings plan for the employees. The EPF rate has been 8.5% since 2005-06. The decision was taken by the Central Board of Trustees (CBT) of the EPFO. Company-run PF trusts could be affected as they are required to match the EPFO rate. EPFO’s estimated 2010-11 earnings would only support a payout of 8.5% and the decision to provide 9.5% interest rate would result in a deficit of about Rs 1,600 crore.

Another bad news is that, if the PF account is idle for more than three years, they there will not be any interest paid for that account. That means if you leave a company and leave the PF account. It will earn the interest for first three years.

EPF Balance Information on SMS


This hike will be benefited by the salaried people to match with the increase in the inflation. Inflation is the main reason why the PF rate is increased. If you have any doubts please post it in the comments section.

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  1. Jay says

    What about those employees who doesn’t hv PF facility?
    can they contribute by them selves to EPF?
    Is there any better alternative than EPF?

  2. Ram says


    This is very gud information published. I have one question regarding this. right now i am working in US and i have not closed my India PF account. In your posting you mentioned if PF account is idle for 3 yrs, that account won’t get interest. Is there any way to keep the account active to get interest ?


  3. Deepak says

    I have a question here. I had worked an organisation in noida for 3.6 yrs and later i got appointment in gurgaon based firm where no pf facility was there. Now I am in Hyderabad and i have new PF account here. I have resigned from Noida based firm but they have not clear my dues and not accepted my resign. Then what i should do to get my PF transfered in my new company account or in case what to do for withdrawl? As noida firm will not support me in any case. I couldnot get any PF or other form dully signed from them. Please help.

  4. Sameer says

    Hi Krishna,

    My employer not providing PF to me even we are Pvt. Ltd. My basic is too high, I have paid 20 thousand tax this year even after investing 1 lac in tax saving instruments. This is due to my basic, it’s too high!!

    Out of my 40K salary, 35K is my basic, what to do, I m in IT company.

    Please suggest is there any to get PF, I know PPF but it’s for 15 years lock in. I dont want that. Since I know that EPF have 9.5% rates and money is on your hand, with no lock in. Once you leave employer you can get your EPF money back after 3 months of leaving.

    Please suggest your views.

  5. P V Bokale says

    I have resigned form my services and got my PF account settled in the month of Feb’2011. As the interest rate is declared after this whether i am eligible for the incresed 1% additinal interest (from 8.5 to 9.5%) declared this year.

  6. says


    EPF must be provided by the employer. Those who don’t have PF and want the long term savings, please invest in the PPF. PPF and EPF has lot of differences.


    After three years the account will be de activated and no interested will be credited. You have no way to activate it unless you transfer that account to your new employer in India. Otherwise you withdraw the amount.


    PF is not associated with any company, it is govt. regulated body. They must co-operate and transfer your PF. Basically the PF amount will be with govt. not with that company. They just need send your transfer request to the PF office.


    Your situation is bad. If your company is not providing PF means it must be following the laws. Please ask your HR why they are not giving the PF.


    PF interest rates same for every one.

    @Bharat Bajaj,

    No. they don’t have any rights to stop your PF money.

    @P V Bokale,

    They would have calculated the interest rates properly. You need not worry about it.


  7. madhu says

    dear sir,
    i want to take home loan & with additional to that i want to take partial withdraw p.f amount.what is ur sujjestion whether i take only home loan or p.f also .my age is 37.kindly sujjest which is better. i’m looking for 10lak loan with 2lak pf..

  8. madhu says

    dear sir,
    i want to take home loan & with additional to that i want to take partial withdraw p.f amount.what is ur sujjestion whether i take only home loan or p.f also .my age is 37.kindly sujjest which is better. i’m looking for 10lak loan with 2lak pf..

  9. says

    Hello Madhu,

    It not good idea to withdraw the PF amount. But, it all depends on your needs. Also, the current situation is that the home loan interest rates are very high.

    If you are capable of repaying the loan in short duration, without taking the PF amount manage the situation.


  10. T.R.Ranganathan says

    How about retired emplyees who are getting pension on PF amount through LIC. Will the monthly pension go up ?

  11. P V Bokale says

    Dear Mr krishna,

    This is in your reply to my querry dtd 13.04.2011 regarding diff in rate of interest payable since declared after the settlement.

    My employer has confirmed that the rate paid to me in Feb’11 was 8.5%.

    My querry is whether I am eligible for the diff of 1% since 9.5% rate is declared after settlement of my account by the employer.


  12. adarsh gupta says

    hi krishna,
    i would like to know what is a demat account and how it is different from a normal savings account.


  13. MEENA says

    My company deducted the pf of mine. Now I am working with other company and leaving the company on 31-03-2011. when I applied for the pf and deposited the form at wazirpur pf office they rejected the same as they have not given the details of 3a, 6a with that and thats rejected. If I have to put the complaints regarding this where I have to go.


  14. Krishna says


    You can contact HR Manager or any other concern person of your previous employer to furnish all the requird forms to avoide the rejection from PF authority or else you can even apply for transfering the PF amount to your present account by giving form 13


  15. T.R.Ranganathan says


    You have not replied to my query. I am already getting pension thro LIC on the PF uncommuted balance.

    Bcos of this increase in interest rate, will my monthly pension go up ?

  16. says

    Dear sir,

    who will get the pension benifit from the Pf. what is the amount they are deduct from the Toatl amount. Minimum How many years we active the same ?when we will get online ?


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