EPF Interest Rate – When the Government of India established the Employees Provident Fund Organization (EPFO) in 1952, this EPF Scheme 1952 Act was implemented.
The Employees Provident Fund Organization (EPFO) maintained the PF Interest Rate (EPF Interest Rate) at 8.55% for the financial year 2020-21. But, this interest rate is the lowest in the last 7 years. Earlier it was 8.65% for the financial year 2016-17. But, you will be surprised to know that the provident fund i.e. the interest received on your PF was also 12%. But, in the last several years, it has been continuously cut. This time too, there were speculations that interest may be cut. However, the CBT recommended that it be retained.
When did you get the interest rate?
In 1952, when the Government of India established the Employees Provident Fund Organization, this EPF Scheme 1952 Act was implemented. This is where the interest on PF started. Initially the interest rate on this was just 3%. After this, it was extended for the first time in the financial year 1955-56. The interest rate fixed for two years was 3.50%. After this it increased to 4% in 1963-64.
Interest increased every year from
1963-64, after the financial year 1963-64, it started to be increased by 0.25 per cent every year. It increased to 5.50% by 1969-70. However, since then, it has been continuously braking at 0.25% and the EPFO increased it by only 0.10% in the financial year 1970-71.
Apart from interest, the bonus given
for the first time in 1977-78 was 8%. It has been above this since then. But, in 1978-79, the biggest benefit was given to the PF holders. When the government increased it to 8.25%, it also gave a bonus of 0.5%. However, this bonus was taken for those who have never withdrawn their PF. The amount received as a bonus was given only on the PF of 1976–1977 and 1977–1978.
For the first time, the interest
received on the Provident Fund at 10% interest rate reached for the first time in two digits in 1985-86. During that time the government directly increased it from 9.90% to 10.15%. After this, there was another big jump. When the interest rate for the next year 1986-87 was fixed at 11%.
The interest rate did not change for 10 years, for the
first time when the PF interest rate was not changed for 10 years. EPFO used to get the highest 12% interest on PF in 1989-90. It was not changed until 2001. Till the financial year 2000-01, the interest on PF continued to be at the rate of 12% only. However, after this, scissors began to be run on the jobber’s pocket. From July 2001 it was reduced to 11%.
Scissors’ run on the pocket of the serviceman In
2004-05, there was a scissors on the pocket of the jobmaster. The PF interest rate (EPF Interest Rate) was cut directly by 1% and was reduced from 9.50% to 8.50%. However, it was again increased to 9.50% in 2010-11. However, once again in 2011-12, major cuts were made. It was reduced to 8.25% from 9.50%. It again rose to 8.75% in 2014-15. In 2015-16, it was again increased and the rate reached 8.80%. But, since then it has been continuously cut. The current rate has been kept at 8.50%.
What is EPF?
Employee Provident Fund (EPF) is a type of investment for an employee working in a government or non-government company. PF is helpful in the future of every serviceman. This fund is maintained by EPFO (Employees Provident Fund Organization) Maintenance. According to the rules of law, a company that has more than 20 people to work, must be registered with the EPFO. Under this, some part of the salary of the person receiving salary is deposited here every month and this money is used at the time of retirement.
As a PF, how much is deducted
from salary, 12% is deducted from the salary of the employees working in companies covered under EPFO. This same part is also deposited from the company’s account. It is worth noting that the entire 12% deducted from your salary will go to your account. However, out of the 12% deducted from the company’s account, 3.67% is deposited in PF and 8.33% in EPS (Employee Pension Scheme). For example, if your basic salary is from 6500, then 8.33% of your company i.e. Rs 541 will be deposited in EPS. The rest of the money will go to the EPF. In this way, a total of 24% is deposited in your EPF.
