EPFO today announced the increase of 25 bps in Interest rates on PF deposits for 2013-14 from the

existing 8.50% to 8.75%. It seems to be a good recommendation which will give a relief to “AAM

JANTA”. The above chart which displays the historical trend of PF Rates and Inflation adjusted version

of PF rates reveals the true picture. In the 2nd half of the timeline, the inflation adjusted version of PF

rates have plunged into the negative territory. The increase of 25 bps is not actually helping out the

honest taxpayers in their fight with menace of inflation.

References:

http://www.epfindia.gov.in/sites/pdf/InterestRate_OnPFAccumulationsSince1952.pdf

http://www.rbi.org.in/scripts/PublicationsView.aspx?id=15161

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

PF Interest Rates and Inflation

EPF Rates Real EPF rate for Industrial Workers

Real EPF rate for Urban non-manual employees Real EPF rate for Agricultural labourers