Interest Calculation 

Use

In many PF management calculations, it is often questioned how interest can be reduced for a time period ("pro rata").

In the standard system, such reductions are based on a 30-day month. Interest accrual starts on the value date of the posting, where the first day is taken into account. For example,

Date from – to

Number of days for interest calculation

01.01.1997 – 31.12.1997

360

01.01.1997 – 01.01.1997

1

01.01.1997 – 30.01.1997

30

01.01.1997 – 31.01.1997

30

31.01.1997 – 28.02.1997

31

27.02.1997 – 28.02.1997

4

27.02.2000 – 28.02.2000

2

29.02.2000 – 01.03.2000

2

 

The last day of the month is treated as the 30th, even in February of a leap year. (Note that the year 2000 – unlike 1900 – is a leap year).

Interest on entry benefits are calculated between the value date and the calculation reference date (for example, end-of-year or leaving date) for the individual postings (if necessary as a negative value, as with advances). It is cumulated and rounded to 5 Swiss centimes.

 

The employee’s individual account contains the following postings:

Value type

Value

Value date

KE30 (invested LMB)

100.000,00

16.04.1997

KAA1 (EHO Advance)

-50.000,00

30.11.1997

At an interest rate of 4%, the following interest accrual arises as of 31.12.1997:

You receive a total of CHF 2.661,11 (rounded to CHF 2.661,10) as total interest on incoming payments.