2 days ago

EPFO Revises Final PF Interest Calculation Through Payment Authorisation

EPFO final PF withdrawal rule: How is your interest calculated up to the payment authorisation date? · livemint.com

EPFO has changed how interest is calculated when someone withdraws their entire PF balance.

Earlier, interest could stop at the end of an earlier month.

Now, interest can be counted up to the day EPFO authorises the final payment.

For example, a payment authorised on 20 June may receive interest through 20 June.

This applies even if the claim was submitted earlier.

The EPF interest rate is set for each financial year.

Once the money is finally withdrawn, no more interest is added to that amount.

The rule does not change interest calculations for partial withdrawals or advances.

Key facts

Applicable claim: Final PF withdrawal or final settlement claims involving withdrawal of the entire eligible PF balance.
Interest end date: The date on which EPFO authorises the final payment.
Claim submission: Interest is calculated according to the authorisation date, regardless of when the claim was submitted.
Earlier approach: Interest could stop at the last day of an earlier month or another monthly cutoff.
Example: If a ₹10 lakh balance is authorised on 20 June, interest may be calculated through 20 June.
Post-withdrawal interest: No further interest accrues after the payment is authorised and the PF amount is withdrawn.
Excluded withdrawals: The rule does not change calculations for partial withdrawals or EPF advances.

livemint.com · 2 days ago