The Employees’ Provident Fund Organisation (EPFO) is expected to finalize an 8.25% interest rate for FY 2024-25, a slight increase from the previous year. This decision will impact millions of salaried employees contributing to the Employees’ Provident Fund (EPF), a crucial retirement savings scheme in India.
With this new rate, understanding how to check your EPF balance is essential to track your savings and plan for the future. This article provides a step-by-step guide on checking your EPF balance through various methods, ensuring a smooth and hassle-free process.
EPFO Set to Fix 8.25% Interest Rate for FY 2024-25:
| Topic | Details |
|---|---|
| New EPF Interest Rate | Expected to be 8.25% for FY 2024-25 |
| Who Benefits? | Salaried employees under the EPF scheme |
| How to Check EPF Balance? | Via UMANG app, EPFO website, SMS, missed call |
| Official Website | EPFO India |
With the EPFO expected to set the interest rate at 8.25% for FY 2024-25, understanding how to check your EPF balance is crucial for financial planning. Whether using the UMANG app, EPFO website, SMS, or missed call, keeping track of your savings ensures financial security and growth. Make sure your UAN is activated and linked to your Aadhaar and bank account for a hassle-free experience.
Understanding EPF and Its Importance
The Employees’ Provident Fund (EPF) is a mandatory savings scheme for salaried employees in India. Both the employee and employer contribute 12% of the basic salary and dearness allowance to the fund every month. The contributions accumulate over time and earn interest, providing financial security after retirement.
EPF Benefits:
- Long-term savings for retirement with compounded growth
- Tax benefits under Section 80C of the Income Tax Act
- Partial withdrawals allowed for emergencies, home loans, and education expenses
- Employer contribution ensures higher savings growth
- Government-backed security, making it a risk-free investment option
How EPF Interest is Calculated
EPF interest is calculated monthly but credited annually. The formula used for calculation is:
Monthly Interest = (Total Balance at Beginning of the Month + Contributions) × Interest Rate / 12
For example, if your total balance at the beginning of the month is ₹1,00,000 and you contribute ₹5,000, the monthly interest will be:
(1,00,000 + 5,000) × 8.25% / 12 = ₹720.83
This amount gets accumulated over the year and credited at the end of the financial year.
How to Check Your EPF Balance?
There are multiple ways to check your EPF balance, whether online or offline. Below are the easiest methods:
1. Check EPF Balance via UMANG App
The Unified Mobile Application for New-age Governance (UMANG) app provides seamless access to EPFO services.
Steps to Check Balance:
- Download the UMANG App from the Google Play Store or Apple App Store.
- Open the app and select EPFO under Social Security Services.
- Click on Employee Centric Services > View Passbook.
- Enter your UAN (Universal Account Number) and authenticate via OTP.
- View your EPF balance and transaction history instantly.
2. Check EPF Balance Online via EPFO Portal
The EPFO website allows employees to check their balance through the member passbook portal.
Steps to Check Balance Online:
- Visit the EPFO Passbook Portal: passbook.epfindia.gov.in
- Login using UAN and Password (Ensure UAN is activated).
- Select your Member ID to view the balance.
- Download your passbook for reference.
3. Check EPF Balance via SMS
If you prefer an offline method, you can receive your EPF balance details via SMS.
Steps to Check Balance via SMS:
- Send an SMS in the following format:
EPFOHO UAN ENGto 7738299899. - Replace ENG with your preferred language code (HIN for Hindi, TAM for Tamil, etc.).
- Ensure your UAN is linked to Aadhaar, PAN, and Bank Account.
- Receive an SMS with your latest EPF balance details.
4. Check EPF Balance via Missed Call
A quick and free method to check your EPF balance is through a missed call.
Steps to Check Balance via Missed Call:
- Dial 9966044425 from your registered mobile number.
- Wait for the call to disconnect automatically.
- Receive an SMS with your EPF balance details.
- Ensure your UAN is linked to your mobile number.
What This Means for Salaried Employees
The 8.25% interest rate will ensure stable growth of retirement savings for millions of employees. Here’s why this matters:
- Higher Returns: Compared to traditional savings accounts (which offer 3-4% interest), EPF provides secure and high-yield savings.
- Tax Benefits: EPF contributions and interest earnings are tax-free under specific conditions.
- Financial Security: Long-term savings with compounding interest help in post-retirement planning.
Frequently Asked Questions (FAQs)
1. What is the interest rate on EPF for FY 2024-25?
The EPF interest rate is expected to be 8.25%, pending official confirmation by the Central Board of Trustees (CBT).
2. How often is EPF interest credited?
EPF interest is credited annually, usually at the end of the financial year.
3. Can I withdraw my EPF balance before retirement?
Yes, partial withdrawals are allowed for specific reasons such as medical emergencies, home loans, and education. Full withdrawal is permitted after retirement or two months of unemployment.
4. How can I activate my UAN?
You can activate your UAN through the EPFO member portal using your Aadhaar, PAN, and mobile number.
5. Is EPF better than PPF?
Both are secure savings schemes, but EPF is mandatory for salaried employees, whereas PPF is voluntary. EPF offers employer contributions, making it more lucrative.
