Revised (2012-13) interest rate of Employees Provident Fund (EPF)

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Labour Minister confirmed that for current fiscal, interest on Employees Provident Fund is fixed at 8.5%. Previously for the years 2010-11 it was 9.5% and for 2011-12 it was 8.25%. So as was hope from all it is now 8.6%  which is really beneficial to salaried class.

But when you compare with Public Provident Fund (PPF) interest rate which is 8.8% for current year, it looks bit low. Only relief for the subscribers of EPF is that-Social Welfare emotion attached with it. Hence government will also play safe in investing and distributing it to beneficiaries.

We cant say the same increasing trend will continue in future also as rate revision on both the schemes revised yearly. But for tax benefit point and safer heaven of investments, still both EPF and PPF holds best options to Indian non risky investors. In terms of investment EPF holds good as your employer too will contribute upto 12% of your salary and if you wish you can voluntarily contribute more to build a retirement corpus. But as EPF is defined contribution plan, it is associated with few risks too. Those are-It is difficult to build a good corpus for the employees who start their profession lately and participants will bear the risk of investment which you can notice by the yearly changes of EPF rates.

So once again I am repeating the same line (keeping in mind of voluntary contributors of EPF) -Plan your goal and accordingly choose the options in which you want to invest based on your risk appetite.  Happy Investing !!! 🙂

Click Here to view the announcement about the same in a daily.

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22 Responses

  1. Hi, I have old EPF account from 1996 to 2006. After that I had joined in another company in 2006 end.. But had given form 13 to present employer two times and it was missed at local pf office. Finally I had transferred the amount through online. Now I had received only the amount as mentioned in the old pf slip ie.2010-11. ( this is the final slip received for old pf account).
    They have added any interest after 2011. Pl guide to get the full amount. Thanks.

  2. Hello Basavraj,

    I have following two queries
    1. The interest what we got is compound or it is simple on our contribution to fund value (excluding interest rates accumlated every year)
    2. If I want to widraw money can I take out whole fund including pension fund accumlated.




  4. hey basu. thanks for the information provided. i wanted to know that this interest rate is applied in which month?? i expect it around march or april [transition of financial year] . or it follows some other trend??

  5. NO…………………For F.Y.2012-13 – The EPFO department pay Interest @8.25% p.a. on the Final Settlement payment. The EPFO was not accountable for Declaration of Minister. Only Gazatted Notification is permissible and as on date the FM have not issued any notification for increase in Interest Rate of EPF for F.Y.2012-13 as @8.6%. However the misiter only raised their voice for cheap publicity stunt. This F.Y. Interest receved by our College is 8.25% from EPFO.

      1. Dear Nivesh

        As per the Rules & Regulation till the gazetted notification from FM is not in the public domain, rate allowed is only 8.25%

    1. Monika-I shared the information which I found from news articles. This was the statement issued by concerned minister in parliament.

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