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New Delhi: The Provident Fund beneficiaries are likely to get Good News. Reports suggest that the government is expected to increase the interest rates of EPF for the financial year 2025-26. It is believed that this time the government can increase the interest rates on PF to 8.75%. If the rate is hiked, eight crore PF account holders would benefit directly.
At present, the interest earned on Provident Fund is 8.25 per cent. This is for the financial year 2024-25. The reports are suggesting that the rate could be increased to 8.75 percent. If thai happens, it would be a good jump of 50 basis points. Below is a list of interest rates of previous years.
| EPF Timeline | EPF Interest |
|---|---|
| 2024-2025 | 8.25% |
| 2023-2024 | 8.25% |
| 2022-2023 | 8.10% |
| 2020 – 2021 | 8.50% |
| 2019 – 2020 | 8.50% |
| 2018 – 2019 | 8.65% |
| 2017 – 2018 | 8.55% |
| 2016 – 2017 | 8.65% |
| 2015 – 2016 | 8.80% |
| 2013 – 2015 | 8.75% |
| 2012 – 2013 | 8.50% |
| 2011 – 2012 | 8.25% |
| 2010 – 2011 | 9.50% |
| 2005 – 2010 | 8.50% |
| 2004 – 2005 | 9.50% (9% Interest + 0.5% Golden Jubilee bonus interest) |
| 2001 – 2004 | 9.50% |
| 2000 – 2001 | 12% (April-June, 2001) and 11% (July 2001 onwards) on the monthly running balance |
| 1989 – 2000 | 12.00% |
| 1988 – 1989 | 11.80% |
| 1987 – 1988 | 11.50% |
| 1986 – 1987 | 11.00% |
| 1985 – 1986 | 10.15% |
| 1984 – 1985 | 9.90% |
| 1983 – 1984 | 9.15% |
| 1982 – 1983 | 8.75% |
| 1981 – 1982 | 8.50% |
| 1979 – 1981 | 8.25% |
| 1978 – 1979 | 8.25% + 0.5% bonus (for members who did not withdraw any amount from their PF during 1976-1977 & 1977-1978) |
| 1977 – 1978 | 8.00% |
| 1976 – 1977 | 7.50% |
| 1975 – 1976 | 7.00% |
| 1974 – 1975 | 6.50% |
| 1972 – 1974 | 6.00% |
| 1971 – 1972 | 5.80% |
| 1970 – 1971 | 5.70% |
| 1969 – 1970 | 5.50% |
| 1968 – 1969 | 5.25% |
| 1967 – 1968 | 5.00% |
| 1966 – 1967 | 4.75% |
| 1965 – 1966 | 4.50% |
| 1963 – 1964 | 4.25% |
| 1957 – 1963 | 4.00% |
| 1955 – 1957 | 3.50% |
| 1952 – 1955 | 3.00% |
The government credits the interest earned to the PF accounts every year annually. It is believed that a final decision on EPF interest rate hike can be taken in the month of January. If the rate is increased, it would be beneficial for crores of PF account holders. Suppose you have Rs 5 lakh in your account, then you will get a direct benefit of about Rs 40,000 to Rs 42000 as interest.
"The EPFO plays a crucial role in ensuring long-term social security for millions of workers in the organized sector. The recent decision of the Central Board of Trustees (CBT) reflects a fine balance between very liberal & simplified withdrawal options for various needs with a decent corpus at the time of retirement and ensures Ease of Living for members," the Ministry of Labour & Employment states.
The EPF interest rate hike issue is expected to be discussed in the forthcoming meeting of the Central Board of Trustees (CBT) of EPFO. In an exclusive conversation with Ashwini Rana, Founder of Voice of Banking, TV9’s Manish Ranjan discussed the possibility of EPF rate hike and other important details of Provident Fund:
