What is the EPF Interest Rate 2019 – 2020? Do you know the historical EPF interest rates from 1952 to 2020? Let us look at these data.

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 is split.

How EPF and EPS works

EPF Interest Rate 2019 – 2020 – Historical interest rates from 1952 to 2019

If we look at the historical returns of EPF, in FY 1952-53, it was 3% and gradually increased and during FY 1981-82, it touched the 8.5% interest rate (which is also the current interest rate of EPF for FY 2019-20).

EPF Interest Rates from 1952-53 to 1981-82

From FY 1982-83 to up to FY 2004-05, it is the high-interest period of starting from 8.5% to going peak at 12% for almost 12 years from FY 1989 to FY 2000-01.

EPF Interest Rate from 1982-83 to 2004-05

From 2005-06 to 2019-20, it is almost stable (except for the year 2010-11 (where it was 9.5%).

EPF Interest Rate from 2005-06 to 2019-20

If we check the EPF interest rates from 1952-53 to 2019-20 and try to understand interest periods using a histogram chart, then we find these results.

EPF Interest Rate 2019 - 2020 - Historical interest rates from 1952 to 2019

You noticed that the EPF interest rate was around 18 times within the range of 3% to 6%, 8 times within the range of 6% to 8%, 27 times within the range of 8% to 11% and 15 times within the range of 11% to more.

By noticing this trend, you have to still have a big relief that you are under the second-highest interest rate group currently as the EPF Interest Rate 2019 – 2020 is 8.5%.

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.

EPF Contribution Rate from 1952 to 2020

Conclusion:-Many of us are unhappy with the way the interest rate on EPF is decreasing. However, if you look back at the historical interest rates, then you are still under a higher interest rate regime. Be proud with this highest Government of India subsidy for the employees 🙂

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