The Workers Provident Fund or EPF rate of interest for 2022-23 is elevated to eight.15%. For FY 2021-22, it was 8.1%. Therefore, the increment of 0.05%. Allow us to have a look at the previous 72 years’ historical past of EPF curiosity additionally.
EPF types one of the crucial vital elements of anybody’s retirement portfolio. It’s also one of many enticing debt devices as its a hard and fast, protected, and tax-free returns at retirement. Therefore, many attempt to make investments extra together with the default possibility 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.
Word:- 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 rate of interest 2022-23 – Historical past of EPF charges 1952 to 2023
As I discussed above, The Workers Provident Fund or EPF rate of interest for 2022-23 is elevated to eight.15%. For FY 2021-22, it was 8.1%. Therefore, the increment of 0.05%.
Nonetheless, allow us to look into the previous 71 years’ rate of interest motion of EPF.
If we have a look at the historic returns of EPF, in FY 1952-53, it was 3% and steadily 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 repeatedly on an uptrend and first 40 years peak was 12%.
From 1992-93 to 1999-00, it was at its peak of 12%. In a while, it’s decreasing yr on yr and now it touched to eight.15% for FY 2022-23.
Let me share the historic EPF rate of interest from 1952 to 2023.
| 12 months | EPF Curiosity Fee |
| 1952-53 | 3.00% |
| 1953-54 | 3.00% |
| 1954-55 | 3.00% |
| 1955-56 | 3.50% |
| 1956-57 | 3.50% |
| 1957-58 | 3.80% |
| 1958-59 | 3.80% |
| 1959-60 | 3.80% |
| 1960-61 | 3.80% |
| 1961-62 | 3.80% |
| 1962-63 | 3.80% |
| 1963-64 | 4.00% |
| 1964-65 | 4.30% |
| 1965-66 | 4.50% |
| 1966-67 | 4.80% |
| 1967-68 | 5.00% |
| 1968-69 | 5.30% |
| 1969-70 | 5.50% |
| 1970-71 | 5.70% |
| 1971-72 | 5.80% |
| 1972-73 | 6.00% |
| 1973-74 | 6.00% |
| 1974-75 | 6.50% |
| 1975-76 | 7.00% |
| 1976-77 | 7.50% |
| 1977-78 | 8.00% |
| 1978-79 | 8.30% |
| 1979-80 | 8.30% |
| 1980-81 | 8.30% |
| 1981-82 | 8.50% |
| 1982-83 | 8.80% |
| 1983-84 | 9.20% |
| 1984-85 | 9.90% |
| 1985-86 | 10.20% |
| 1986-87 | 11.00% |
| 1987-88 | 11.50% |
| 1988-89 | 11.80% |
| 1989-90 | 12.00% |
| 1990-91 | 12.00% |
| 1991-92 | 12.00% |
| 1992-93 | 12.00% |
| 1993-94 | 12.00% |
| 1994-95 | 12.00% |
| 1995-96 | 12.00% |
| 1996-97 | 12.00% |
| 1997-98 | 12.00% |
| 1998-99 | 12.00% |
| 1999-00 | 12.00% |
| 2000-01 | 11.00% |
| 2001-02 | 9.50% |
| 2002-03 | 9.50% |
| 2003-04 | 9.10% |
| 2004-05 | 9.50% |
| 2005-06 | 8.50% |
| 2006-07 | 8.50% |
| 2007-08 | 8.50% |
| 2008-09 | 8.50% |
| 2009-10 | 8.50% |
| 2010-11 | 9.50% |
| 2011-12 | 8.30% |
| 2012-13 | 8.50% |
| 2013-14 | 8.80% |
| 2014-15 | 8.80% |
| 2015-16 | 8.80% |
| 2016-17 | 8.70% |
| 2017-18 | 8.60% |
| 2018-19 | 8.70% |
| 2019-20 | 8.50% |
| 2020-21 | 8.50% |
| 2021-22 | 8.10% |
| 2022-23 | 8.15% |
If we draw the histogram chart of those 71 years’ knowledge, then it seems just like the beneath.
The vast majority of the time, the rate of interest was inside 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 prevailing 8.5% to eight.1% just isn’t new. Nonetheless, sure it clearly hurts many salaried.
Allow us to verify the EPF contribution historical past additionally.
If you happen to try the historic EPF contribution price, it elevated quite a bit from round 6.25% in 1956 to at the moment 12% of Primary+DA.
Conclusion – The present 8.15% continues to be higher than every other out there debt possibility. Therefore, I strongly advocate EPF and VPF contributions, particularly for retirement objective.