Delayed EPF interest? Will you be at loss if EPF interest credit is delayed?

The Employees' Provident Fund Organisation (EPFO) announced an 8.25% interest rate for FY 2024-25 in February 2024, but the interest amount is yet to be credited in the accounts of all EPF members. Interest credit may occur later due to administrative processes. Only when the government issues an official notification about the same the EPF interest is credited to the EPF members accounts.

EPF interest rate: Will you lose higher interest on EPF if you don't transfer your EPF account from old to new employer?

If the annual interest credit is delayed, many EPF subscribers may become apprehensive if they will lose the opportunity to earn compound interest on accrued interest due to this delay.

Does the delay in interest credit result in loss for EPF subscribers?

Consider a bank fixed deposit, if the interest amount is credited on time, it is added to the principal and it starts earning more interest. For instance, if the interest rate is 10%, a Rs 100 deposit earns Rs 10 in a year. If it is credited, the new principal becomes Rs 110 and it will earn more interest, which is Rs 11 next year at the same interest rate. So, any delay in credit of interest may lead to loss of interest earning opportunity.

However, any delay in crediting the interest reduces the time that the higher principal amount could be earning interest—resulting in a loss of potential returns.

This raises an important question for EPF subscribers:

Does a delay in crediting EPF interest affect earnings in the following financial year?

According to paragraph 60 of the EPF Scheme of 1952, interest is computed on the monthly running balance even if it is credited at the end of the fiscal year. As a result, the member does not suffer in the event of any delay in crediting interest to his account.

The EPFO calculates interest based on the monthly running balance, ensuring every contribution earns the full declared rate. Interest is compounded annually, so even if crediting happens late, the full amount is added to your closing balance for the year.

The EPFO on multiple occasions has responded to a number of such inquiries by stating that there would be no interest loss and that interest would be accrued and paid in full whenever it was credited.

EPFO social media handle on X (formerly Twitter) @socialepfo also replied to a concerned member on March 14, 2024 about interest credit process delay and its implications and said, "The process is in pipeline and may be shown there very shortly. Whenever the interest will be credited, it will be accumulated and paid in full. There would be no loss of interest. Please maintain patience." Even last year, this is what EPFO told concerned members regarding the loss of interest due to the delay.

So, any delay in credit of interest is not going to result in any loss for EPF subscribers.

How to check EPF balance

An employee whose EPF account is managed by the EPFO can check the account balance using following four ways:
a) By using Umang app
b) By visiting EPF member e-sewa portal
c) By giving missed call
d) By sending SMS

How to check EPF balance on UMANG app

The subscribers can now easily check their PF balance at home on the UMANG application.
Step 1: Download and install Umang app
Step 2: Register from your mobile number
Step 3: Choose "EPFO" from the options
Step 4: Click "View Passbook."
Step 5: After entering your UAN, click Get OTP.
Step 6: Select "Login."
Your passbook and EPF balance will be shown on the screen.

How to check EPF balance using EPFO portal

Go to the employee section of the EPFO website and click on "Member Passbook." By entering your UAN and password, you can gain access to the PF passbook. Employee and employer contributions, as well as opening and closing balances, will be detailed. The sum of any PF transfers, as well as the amount of PF interest generated, will be shown. The EPF balance can also be viewed with a passbook.

How to check EPF balance by sending SMS

If your UAN is registered with the EPFO, you may get information about your most recent contribution and PF balance by sending an SMS to 7738299899. You have to send the following communication: UAN EPFOHO ENG. The first three letters of the requested language are "ENG." To receive the message in Marathi, enter EPFOHO UAN MAR. Verify that your bank account, Aadhaar, and PAN are seeded into your UAN, or update the most recent data.