Provident Fund (PF) Interest Rate for 2012-2013
Over five crore subscribers of the retirement fund body Employees’ Provident Fund Organisation (EPFO) will get an 8.5 per cent return on their investment for the fiscal year 2012-13, higher than the 8.25 per cent paid in the previous fiscal year.
According to the EPFO’s estimates, the payment of an 8.6 per cent interest would result in a deficit of Rs. 240.49 crore, whereas an 8.5 per cent rate of return on PF deposits for the current fiscal year would leave a surplus of Rs. 4.13 crore.
EPFO had paid an 8.25 per cent interest to its subscribers for 2011-12, lower than the 9.5 per cent disbursed in the previous fiscal year.
The notification on interest rate is issued by the government after concurrence with the Finance Ministry.
Although EPFO announces interest rate at the beginning of the year, there has been a delay this year.
Trade unions have been pressing for an early meeting of the Central Board of Trustees (CBT) to decide on the interest rate for the current fiscal year.
PF Interest Rate History
In the recent past, the PF interest rate has peaked at 12%! This fabulous rate was applicable in the 1990s.
Here is a graph that shows the historical PF interest rates.