The Staff 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 varieties one of the crucial essential elements of anybody’s retirement portfolio. It is usually 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 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.
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 Staff 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 fee).
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.15% for FY 2022-23.
Let me share the historic EPF rate of interest from 1952 to 2023.
| Yr | EPF Curiosity Price |
| 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’ information, then it appears just like the beneath.
Nearly all of the time, the rate of interest was throughout the vary of seven.8% to 10.2%. Then the subsequent 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% isn’t new. Nonetheless, sure it clearly hurts many salaried.
Allow us to examine the EPF contribution historical past additionally.
If you happen to try the historic EPF contribution fee, it elevated rather a lot from round 6.25% in 1956 to at present 12% of Fundamental+DA.
Conclusion – The present 8.15% remains to be higher than every other accessible debt choice. Therefore, I strongly advocate EPF and VPF contributions, particularly for retirement aim.
