Tuesday, April 2, 2013

Historical Interest Rates Offered by EPF Scheme in India


The Employee Provident Fund Scheme of India has been in Existence for many decades and is probably the main source of funds for the salaried class of India when they retire. As mentioned in the article titled "Employee Provident Fund - Demystified" the Government offers a fixed Rate of Interest on the contributions that we make towards our individual EPF Accounts. The purpose of this article is to find out what the current EPF Interest Rate is as well as take a look at the historical interest rates that were offered by EPF in the past 20+ years.

What is the Current Interest Rate Offered on EPF Contributions?

8.6%

What is the best Interest Rate that was ever offered on EPF Contributions?

12%

What is the worst Interest Rate that was ever offered on EPF Contributions?

8.25%

Historical EPF Interest Rates:

The following table lists down the Rate of Interest as a %, that was offered on EPF Contributions starting the Financial Year 1981-82.

Financial YearInterest Rate (%)
1981-828.5%
1982-838.75%
1983-849.15%
1984-859.9%
1985-8610.15%
1986-8711%
1987-8811.5%
1988-8911.8%
1989-9012%
1990-9112%
1991-9212%
1992-9312%
1993-9412%
1994-9512%
1995-9612%
1996-9712%
1997-9812%
1998-9912%
1999-200012%
2000-0111%
2001-029.5%
2002-039.5%
2003-049.5%
2004-059.5%
2005-068.5%
2006-078.5%
2007-088.5%
2008-098.5%
2009-108.5%
2010-119.5%
2011-128.25%
2012-138.6%

Hope you found this article useful.

19 comments:

  1. I thought 2012-2013 was 8.8%

    ReplyDelete
    Replies
    1. Hi Anonymous,
      No. It was only 8.6%.

      Thanks
      Anand

      Delete
  2. Check this out: http://en.wikipedia.org/wiki/Public_Provident_Fund_(India)
    Also the interest that I got this year was 8.8%

    ReplyDelete
    Replies
    1. Dear Anonymous,
      This article is about Employee Provident Fund (EPF) and the rate you are talking about is for Public Provident Fund (PPF). They are both two totally different items and there is no surprise that their rate of interests are different too.

      Anand

      Delete
  3. If I close my account by November 2013. when will I get interest amount which will be credited on 31.06.2013. Because when I received e statement, interest amount not shown there.

    ReplyDelete
    Replies
    1. When you close the account the money along with Interest will only be given to you. The interest is usually credited at the end of each financial year only.

      Delete
  4. I has transferred my PF from one company to another in year 2008. It was finally transferred in year 2014 Jan. How can I calculate the interest on the transferred amount?

    ReplyDelete
    Replies
    1. Anonymous - Usually transfer takes a couple of months and Interest calculation is straight forward. In your case - I suggest you talk to your employer to get a latest statement of your PF Account and check how much interest got credited at the end of each year.

      Ideally - the interest must have been calculated like usual but after 3 years of inactivity, an account becomes inactive. So, there is a chance that after 2011 your account acc may not have earned any interest.

      Anand

      Delete
    2. I had applied for the transfer in 2008 only but it was due to PF department negligence that it got delayed for so long. Till now I have only recieved an update that the principal amount has been transferred. No update for interest till now. I also registered for Epassbook option but no updates from there as well.
      Anyways thanks for your reply.

      Delete
  5. wen i check my pf balance there is 28thousand i have to get 28 or more than that plz help

    ReplyDelete
    Replies
    1. I am nt able to understand the Q clearly but if you feel some money is missing, talk to your employer and ask fro a detailed statement and find out the latest balance.

      Delete
  6. i'm not sure about pf,if they cut 19000 hw much i need to get back? plz help

    ReplyDelete
    Replies
    1. not sure I understand the question correctly. Anyways - I have explained how your PF money gets split up and deposited in this article: http://anandvijayakumar.blogspot.sg/2013/03/employee-provident-fund-demystified.html

      Best wishes.

      Delete
  7. Hi Anand, thanks for educating regarding how EPF works. I have a clarification reg. Interest calculated on the contributions made. Is the Interest calcualted on simple interest basis for the total contribution made by both employer & employee & my second question is whether the interest earned on previous years also gets qualified for calculating interest or interest is calculated only on the EPF contributions?

    ReplyDelete
    Replies
    1. Yes, simple interest which gets credited at the end of each year. Yes, the interest earned in the prev year will qualify for interest calculation in the current year

      Delete
  8. Hello Ananda,

    Is it possible to transfer the PF amount from my earlier PF account from the organization that i worked for like 10 years ago to my current PF account with a different organization ? if so what is the procedure & how do go about it?

    Thanks,

    ReplyDelete
    Replies
    1. Read this: http://anandvijayakumar.blogspot.sg/2012/10/can-i-transfer-my-pf-account-to-my-new.html

      Delete
  9. Thanks for your reply Anand with respect to the transfer of PF fr my earlier query. Will the procedure enlisted in your blog remain same, even if i have changed 'n' number of jobs in between. I am asking this question as i swithced one more job since i left that organization & my curren organization. In respect of the organization that i served in between, i had applied for transfer & able to see the same vide my UAN number.

    Thanks again,

    ReplyDelete
    Replies
    1. If you have a company between the first and the current, you can submit multiple requests to transfer all those old pf accounts to your current one.

      Delete

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