Employees PF Interest Rate history in India Since 1952
In a statement issued yesterday (21-02-2019) by the Employees Provident Fund Organization(EPFO) in India, it was increased the Provident Fund(PF) interest rate to 8.65 percent from 8.55 percent for the Financial year 2018-19. This is the first time, the interest rate has been hiked in the past five years.
The Provident Fund rate was seen 8.75 percent in the Financial year 2014-15 and it has been increased by 5 basis points to 8.8 percent in the FY 2015-16. The lowest rate in the last five years were seen at 8.55 percent in the last fiscal year 2017-18.
The Total Annual deposits of Provident fund was Rs. 1,31,000 Crore in the financial year 2017-18 and the estimate for the current Financial year is 1,46,000 Crore rupees. It has stated that there are nearly 6 Crore subscribers will get benefited by this updated 8.65 percent.
The Board of EPFO has also discussed the issue of raising minimum pension under the Employee Pension Scheme(EPS). However it seems to be decided in the upcoming meeting in this case.
In this current Financial year 2018-19, the interest rates of other small savings schemes are lower than the Provident Fund rate except Senior Citizen Savings Scheme (Sr.CSS), which was 8.70 % in the January – March 2019 Quarter.
The PF interest rate history will tells, it was started at 3 percent in the year of 1952-53. The highest interest rate for the past 66 years, it was 12 percent between the years 1990 and 2000, where the inflation at its high. In the Financial year 1978-79, the EPFO declared a 0.5 percent bonus rate with a 8.25 %. It was a bonus for the members who did not withdraw any amount from their Provident Fund during 1976-77 and 1977-78.
In the year 1952, the EPF and MP(Miscellaneous Provisions) Act was enacted by the Parliament in India. The business those who have 20 or more employees should register with the Employees Provident Fund Organization(EPFO) and make a PF Contribution for their employees. In the Past years, the EPFO invested the Provident Fund deposits in Government Bonds for the Capital Protection, now the system have changed. The Department of Economic Affairs were permitted the EPFO to invest in equity too.
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