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Will I get interest on my PF amount after leaving job?

Author

Ava White

Updated on February 25, 2026

Will I get interest on my PF amount after leaving job?

After resigning from a job many individuals do not get their PF balance transferred from the previous employer to the new employer or do not withdraw the balance. After an exit from a job, even though no fresh contributions are made, such PF accounts remain 'operative' with the balance earning interest every year.

Similarly one may ask, will I get interest on PF after resignation?

Interest is not credited to the EPF account only when it becomes inoperative—when one attains the age of 58 years and does not withdraw the EPF. Assuming your age is less than 58 years, your account will continue to earn interest. However, the interest earned in this account will be taxable.

Furthermore, do we get interest on PF amount? The interest rate on EPF is set by the EPFO's central board of trustees every year and vetted by the finance ministry based on market conditions. For example, the rate for the 2016 financial year was 8.8%, the rate of 2017 financial year was 8.65% and the rate for the 2018 financial year is proposed to be 8.55%.

Also to know, how long we get interest on PF after leaving job?

58 years

How can I withdraw my PF if I leave my job?

Under the existing rule, employees who resign from a job before they turn 58 years of age can withdraw the full PF balance (and the EPS amount depending on the years of service), if he is out of employment for 60 straight days (two months) or more after leaving a job and then withdraw.

What happens to EPF after leaving job?

Under the existing rule, employees who resign from a job before they turn 58 years of age can withdraw the full PF balance (and the EPS amount depending on the years of service), if he is out of employment for 60 straight days (two months) or more after leaving a job and then withdraw.

What is current rate of interest on PF?

8.65%

Is EPF interest tax free?

For salaried individuals, the monthly contribution towards the Employee's Provident Fund (EPF) remains the only forced savings mechanism. Not only is the contribution eligible for tax benefits under Section 80C, both the interest earned and money received on super annuation are tax-free.

What if I do not withdraw my PF amount for long time?

A PF account becomes inoperative if the employee does not make an application for withdrawal within 36 months of retiring after attaining the age of 55 years. According to the rules, the unclaimed amount of the account which remains inoperative for 7 years is to be transferred to the Senior Citizens' Welfare Fund.

How is PF interest calculated?

Example of calculation of interest for a financial year-
  1. Employee's contribution towards EPF = 12% of ₹ 15,000 = ₹ 1,800.
  2. Employer's contribution towards EPS = 8.33% of ₹ 15,000 = ₹ 1,250.

Is PF withdrawal taxable?

EPF corpus withdrawal is exempted from tax but under certain conditions. The EPF amount is taxable if there is a break in the contribution to the account for 5 continuous years. In that case, the entire EPF amount will be considered as taxable income for that financial year.

Can we withdraw full PF amount?

New Rule : The EPF members can not withdraw full PF amount before attaining the age of retirement. The maximum withdrawal on cessation of employment cannot exceed an amount aggregating employee's own contribution and interest accrued thereon. You can withdraw your contributions + interest portion only.

What is rate of interest on PF?

8.65%

Which month PF interest will be credited?

It means, the interest for the financial year should, in practice, get credited to EPFO subscribers account on 31 March. While the EPFO board decided to pay 8.65% interest rate to its subscribers for 2018-19 in February 2019, it has not credited this to their account till date.

Is PF money safe?

Yes. Saving in provident fund is safe in India because this is monitored by the government of India. The main motive to establish provident fund by the government was to provide social security & financial support to the employees after their retirement. Does the PF amount withdrawal require only the savings accounts?

Is Epfo safe?

Ankur Choudhary, Co-Founder and CIO, Goalwise replies: EPF is government-backed and offers a guaranteed rate of return, so it is safe. You will continue to earn interest on your EPF account balance even after end of employment till 58 years of age. However, the interest accrued post-employment will be taxable.

Can we save money in EPF?

1) Contribute to EPF, do NOT withdraw
For Malaysians, EPF is undoubtedly the easiest way to save your money. Try to keep your money in your EPF account for as long as possible because there simply aren't any other bank deposits with higher interest rates in the market.

Is EPF guaranteed?

What is the dividend rate guaranteed by the EPF? Under Section 27 of the EPF Act 1991, the guaranteed minimum dividend rate is 2.5% per year on members' savings. As such, members are guaranteed to receive the minimum dividend rate in any situation.

What is Gratuity Fund?

A gratuity fund is a part of the salary an employee receives from his/her employer in gratitude for the work the employee does for the company. Gratuity is a defined benefit plan and is mostly a retirement benefit offered by the company to the employee upon leaving his/her job.

How can I maintain my PF account?

EPFO grievance
  1. Now, fill in the registration form:
  2. Enter your status (Employer, employee, EPS pensioner)
  3. Enter your PF account number.
  4. Then, enter where your regional EPF office is located.
  5. Next, enter the name of your establishment and the address of your establishment.

Does PF amount get double?

If any employee doubles his monthly contribution making it 24% of basic from the default setting of 12%, then the amount in his PF fund will itself double. A timely increase in the PF contribution can help you have double the PF amount at the time of retirement.

How long we can keep PF amount?

3 years

Is EPF interest compounded monthly?

EPF interest is yearly compounding but use the method of “Average Monthly Balance” calculation method. Below is the table which illustrates the calculation method. The above balance at year end of Rs. 9,431 will be considered as a balance for beginning of account year i.e. for March 1st.

Does PF earn interest?

Employees typically rely on PF to build their retirement corpus. The PF account continues to earn interest, whether or not you are in an employment. In case of retirement and where the PF corpus is not withdrawn, post three years, the account becomes inoperative and no interest is paid.

How is PF percentage calculated?

EPF contribution is divided into 2 parts. - If you are a man, you must contribute 10% or 12% of your basic salary. - In case you are a new woman employee, it is 8% of your basic salary for the first 3 years. Thereafter, it becomes 10% or 12% of your basic salary.

How is PF interest calculated in Excel?

Use the fill handle to copy the same formula till the end. Total Contribution: Total Contribution for that year = Employee Contribution + Employer Contribution. The rate of Interest: This rate of interest is fixed by govt. The current rate for EPF is 8.65% per annum.

How is basic salary calculated?

Here the basic salary will be calculated as per follows Basic Salary + Dearness Allowance + HRA Allowance + conveyance allowance + entertainment allowance + medical insurance here the gross salary 594,000. The deduction will be Income tax and provident fund under which the net salary comes around 497,160.

How much amount will I get on EPF withdrawal?

An employee can withdraw upto 90% of total PF balance within one year before retirement, advance on unemployment upto 75% of total PF balance, etc. You can make final withdrawal of your EPF accumulations on retirement or two months after ceasing to be an employee.

How do I withdraw my pension from a previous employer?

The EPS money can be withdrawn by an employee or it can be carried forward through a scheme certificate while switching jobs. If you have taken a scheme certificate, submit it to the EPFO through the new employer. When you leave the job, you will again have to fill Form 10C.

Can I withdraw my PF after joining new company?

As per new PF Rules there is cooling period of 2 months from date of your Last working day and by that time most of employee would have been joined other company as well his PAN number must have submitted by new employer to PF Department so technically No, you can not withdraw your PF.

How can I withdraw my full PF amount online?

How to Withdraw PF Amount Online in 5 Steps:
  1. Visit the EPFO e-SEWA portal and log in using your UAN and password.
  2. Then, check whether you have updated and linked your Aadhaar number to your UAN.
  3. Next, click on the 'Online Services' tab on the UAN dashboard and then click on 'Claim (Form-31, 19 & 10C)'.

What is UAN number?

Universal Account Number (UAN) is a 12 digit number which is provided to each member of the Employees' Provided Fund Organisation (EPFO) through which he can manage his PF accounts. This number is issued by the Ministry of Employment and Labour under the Government of India.

How do I withdraw EPS?

Only once the individual quits the company and before joining a new company can the EPS amount be withdrawn. He/she can withdraw the EPS amount on the EPFO portal by claiming Form 10C. The employee will need to have an active UAN and the KYC details must be linked to the UAN in order to withdraw the EPS amount online.

What is PF final settlement?

Required Details for Form 19 (PF Final Settlement) PF Settlement Form allows members to withdraw their PF balance after quitting their job, superannuation, termination or at the time of retirement. Under no circumstances, can any establishment or organisation can stop members from withdrawing from their EPF balance.

How do you check EPS?

A member can check the amount accumulated in his Employees' Pension Scheme (EPS) account in his EPF Passbook. The last column in the passbook shows the EPS contribution deposited by the employer every month in the account of the member.

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