I am 58 yrs old recently been seperated from a MNC. P? let me know, when I apply for final withdrawal of EPF amount after completion of say another 2-3 years, the way EPFO is crediting interest amount of previous year 8-9 months late, how the interest during the time of exit of that FY would be calculated & credited ?
Ans: The interest on your EPF account is calculated on a monthly basis and is credited to your account at the end of each financial year.
However, the EPFO usually credits the interest amount 8-9 months late. This means that if you apply for final withdrawal of your EPF amount after completing another 2-3 years, the interest for the last financial year will not be credited to your account until 8-9 months after you withdraw the money.
The EPFO calculates the interest on your EPF account using the following formula:
Interest = (EPF balance at the beginning of the year) * (interest rate) * (number of months in the year) / 12.