EPF Curiosity Price FY 2021-22 – Historic EPF charges 1952 to 2022

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EPFO announced EPF Interest Rate FY 2021-22. Let us see the historical EPF interest rates from 1952-53 to 2021-22.

EPF forms one of the most important parts of anyone’s retirement portfolio. It is also one of the attractive debt instruments as its fixed, safe, and tax-free return at retirement. Hence, many try to invest more along with the default option of EPF in the form of VPF.

Before proceeding further, first, let us understand how your EPF contribution is divided. I have written a detailed post in this regard earlier (Employee Provident Fund (EPF)-Changed rules from 1st Sept 2014“. However, I will again show you in detail about your and your employer’s EPF contribution being split.

How EPF and EPS works

Note:- Now the EDLI is raised from earlier Rs.3 lakh to Rs.7 Lakh (EDLI Scheme 2021 – EPF Life Insurance of Rs. 7 Lakh).

EPF Interest Rate FY 2021-22 – Historical EPF rates 1952 to 2022

EPF Interest Rate for FY 2021-22 is decreased from existing 8.5% to 8.1%. However, let us look into the past 70 years’ data of this rate. Let me divide this 70 years of data into the first 40 years and then 30 years. The charts look like below.

EPF Interest Rate from 1952-53 to 1990-91

If we look at the historical returns of EPF, in FY 1952-53, it was 3% and gradually increased and during FY 1977-78, it touched the 8% interest rate (which is around the current rate).

From FY 1978-79 to up to 1991-92 it continuously on an uptrend and first 40 years peak was 12%.

EPF Interest Rate from 1992-93 to 2021-22

From 1992-93 to 1999-00, it was at its peak of 12%. Later on, it is lowering year on year and now it touched to 8.1% for FY 2021-22.

I have mentioned the rates yearwise also from 1952-53 to 2021-22

Year EPF Interest Rate
1952-53 3.0%
1953-54 3.0%
1954-55 3.0%
1955-56 3.5%
1956-57 3.5%
1957-58 3.8%
1958-59 3.8%
1959-60 3.8%
1960-61 3.8%
1961-62 3.8%
1962-63 3.8%
1963-64 4.0%
1964-65 4.3%
1965-66 4.5%
1966-67 4.8%
1967-68 5.0%
1968-69 5.3%
1969-70 5.5%
1970-71 5.7%
1971-72 5.8%
1972-73 6.0%
1973-74 6.0%
1974-75 6.5%
1975-76 7.0%
1976-77 7.5%
1977-78 8.0%
1978-79 8.3%
1979-80 8.3%
1980-81 8.3%
1981-82 8.5%
1982-83 8.8%
1983-84 9.2%
1984-85 9.9%
1985-86 10.2%
1986-87 11.0%
1987-88 11.5%
1988-89 11.8%
1989-90 12.0%
1990-91 12.0%
1991-92 12.0%
1992-93 12.0%
1993-94 12.0%
1994-95 12.0%
1995-96 12.0%
1996-97 12.0%
1997-98 12.0%
1998-99 12.0%
1999-00 12.0%
2000-01 11.0%
2001-02 9.5%
2002-03 9.5%
2003-04 9.1%
2004-05 9.5%
2005-06 8.5%
2006-07 8.5%
2007-08 8.5%
2008-09 8.5%
2009-10 8.5%
2010-11 9.5%
2011-12 8.3%
2012-13 8.5%
2013-14 8.8%
2014-15 8.8%
2015-16 8.8%
2016-17 8.7%
2017-18 8.6%
2018-19 8.7%
2019-20 8.5%
2020-21 8.5%
2021-22 8.1%

If we draw the histogram chart of these 70 years’ data, then it looks like below.

The majority of the time, the interest rate was within the range of 7.8% to 10.2%. Then the next highest was in the range of 3% to 5.4%.

Hence, the current interest rate change from the existing 8.5% to 8.1% is not new. However, yes it obviously hurts many salaried.

Let us check the EPF contribution history also.

EPF Contribution Rate from 1952 to 2020

If you check out the historical EPF contribution rate, it increased a lot from around 6.25% in 1956 to currently at 12% of Basic+DA.

Conclusion – The current 8.1% is still better than any other available debt option. Hence, rather than taking it as a negative way, continue your EPF and VPF contribution as usual.

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