EPFO introduced EPF Curiosity Charge FY 2021-22. Allow us to see the historic EPF rates of interest from 1952-53 to 2021-22.
EPF types probably the most essential elements of anybody’s retirement portfolio. Additionally it is one of many engaging debt devices as its mounted, secure, and tax-free return at retirement. Therefore, many attempt to make investments extra together with the default choice of EPF within the type of VPF.
Earlier than continuing additional, first, allow us to perceive how your EPF contribution is split. I’ve written an in depth publish on this regard earlier (Worker Provident Fund (EPF)-Modified guidelines from 1st Sept 2014“. Nonetheless, I’ll once more present you intimately about your and your employer’s EPF contribution being cut up.
Observe:- Now the EDLI is raised from earlier Rs.3 lakh to Rs.7 Lakh (EDLI Scheme 2021 – EPF Life Insurance coverage of Rs. 7 Lakh).
EPF Curiosity Charge FY 2021-22 – Historic EPF charges 1952 to 2022
EPF Curiosity Charge for FY 2021-22 is decreased from present 8.5% to eight.1%. Nonetheless, allow us to look into the previous 70 years’ information of this price. Let me divide this 70 years of information into the primary 40 years after which 30 years. The charts seem like under.
If we take a look at the historic returns of EPF, in FY 1952-53, it was 3% and progressively elevated and through FY 1977-78, it touched the 8% rate of interest (which is across the present price).
From FY 1978-79 to as much as 1991-92 it constantly on an uptrend and first 40 years peak was 12%.
From 1992-93 to 1999-00, it was at its peak of 12%. Afterward, it’s decreasing yr on yr and now it touched to eight.1% for FY 2021-22.
I’ve talked about the charges yearwise additionally from 1952-53 to 2021-22
Yr EPF Curiosity Charge
1952-53 3.0%
1953-54 3.0%
1954-55 3.0%
1955-56 3.5%
1956-57 3.5%
1957-58 3.8%
1958-59 3.8%
1959-60 3.8%
1960-61 3.8%
1961-62 3.8%
1962-63 3.8%
1963-64 4.0%
1964-65 4.3%
1965-66 4.5%
1966-67 4.8%
1967-68 5.0%
1968-69 5.3%
1969-70 5.5%
1970-71 5.7%
1971-72 5.8%
1972-73 6.0%
1973-74 6.0%
1974-75 6.5%
1975-76 7.0%
1976-77 7.5%
1977-78 8.0%
1978-79 8.3%
1979-80 8.3%
1980-81 8.3%
1981-82 8.5%
1982-83 8.8%
1983-84 9.2%
1984-85 9.9%
1985-86 10.2%
1986-87 11.0%
1987-88 11.5%
1988-89 11.8%
1989-90 12.0%
1990-91 12.0%
1991-92 12.0%
1992-93 12.0%
1993-94 12.0%
1994-95 12.0%
1995-96 12.0%
1996-97 12.0%
1997-98 12.0%
1998-99 12.0%
1999-00 12.0%
2000-01 11.0%
2001-02 9.5%
2002-03 9.5%
2003-04 9.1%
2004-05 9.5%
2005-06 8.5%
2006-07 8.5%
2007-08 8.5%
2008-09 8.5%
2009-10 8.5%
2010-11 9.5%
2011-12 8.3%
2012-13 8.5%
2013-14 8.8%
2014-15 8.8%
2015-16 8.8%
2016-17 8.7%
2017-18 8.6%
2018-19 8.7%
2019-20 8.5%
2020-21 8.5%
2021-22 8.1%
If we draw the histogram chart of those 70 years’ information, then it appears to be like like under.
Nearly all of the time, the rate of interest was throughout the vary of seven.8% to 10.2%. Then the following highest was within the vary of three% to five.4%.
Therefore, the present rate of interest change from the present 8.5% to eight.1% will not be new. Nonetheless, sure it clearly hurts many salaried.
Allow us to verify the EPF contribution historical past additionally.
In case you try the historic EPF contribution price, it elevated quite a bit from round 6.25% in 1956 to presently at 12% of Primary+DA.
Conclusion – The present 8.1% continues to be higher than every other out there debt choice. Therefore, fairly than taking it as a unfavourable means, proceed your EPF and VPF contribution as typical.