What is the EPF Interest Rate 2019 – 2020? Do you know the historical EPF interest rates from 1952 to 2020? Let us look at these data.
Before proceeding further, first, let us understand how your EPF contribution is divided. I have written a detailed post in this regard earlier (Employee Provident Fund (EPF)-Changed rules from 1st Sept 2014“. However, I will again show you in detail about your and your employer’s EPF contribution is split.
EPF Interest Rate 2019 – 2020 – Historical interest rates from 1952 to 2019
If we look at the historical returns of EPF, in FY 1952-53, it was 3% and gradually increased and during FY 1981-82, it touched the 8.5% interest rate (which is also the current interest rate of EPF for FY 2019-20).
From FY 1982-83 to up to FY 2004-05, it is the high-interest period of starting from 8.5% to going peak at 12% for almost 12 years from FY 1989 to FY 2000-01.
From 2005-06 to 2019-20, it is almost stable (except for the year 2010-11 (where it was 9.5%).
If we check the EPF interest rates from 1952-53 to 2019-20 and try to understand interest periods using a histogram chart, then we find these results.
You noticed that the EPF interest rate was around 18 times within the range of 3% to 6%, 8 times within the range of 6% to 8%, 27 times within the range of 8% to 11% and 15 times within the range of 11% to more.
By noticing this trend, you have to still have a big relief that you are under the second-highest interest rate group currently as the EPF Interest Rate 2019 – 2020 is 8.5%.
If you check out the historical EPF contribution rate, it increased a lot from around 6.25% in 1956 to currently at 12% of Basic+DA.
Conclusion:-Many of us are unhappy with the way the interest rate on EPF is decreasing. However, if you look back at the historical interest rates, then you are still under a higher interest rate regime. Be proud with this highest Government of India subsidy for the employees 🙂
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2 Responses
Has the EPF interest rates been credited (8.15+0.35) for the year 2019-20. I have not received it yet. Do I need to wait or do something about it?
Dear Shri,
As of now, NO. Better to wait.