Complete history of EPF interest rates from 1952 to 2026. Understand how rates have changed, compare with other investments, and what to expect going forward.
EPF has been India's primary retirement savings vehicle for over 70 years. Here's the complete interest rate history and what it means for your retirement planning.
Current EPF Interest Rate (2025-26)
| Year |
Interest Rate |
Change |
| 2025-26 |
8.25% |
+0.10% |
| 2024-25 |
8.15% |
+0.05% |
| 2023-24 |
8.15% |
+0.05% |
Calculate your EPF corpus: Use our EPF Calculator.
Complete EPF Interest Rate History
Recent Decade (2015-2026)
| Financial Year |
Interest Rate |
Trend |
| 2025-26 |
8.25% |
↑ |
| 2024-25 |
8.15% |
— |
| 2023-24 |
8.15% |
↑ |
| 2022-23 |
8.10% |
— |
| 2021-22 |
8.10% |
↓ |
| 2020-21 |
8.50% |
↓ |
| 2019-20 |
8.50% |
↓ |
| 2018-19 |
8.65% |
↑ |
| 2017-18 |
8.55% |
↓ |
| 2016-17 |
8.65% |
↓ |
| 2015-16 |
8.80% |
— |
The Decline Years (2000-2015)
| Financial Year |
Interest Rate |
Notable Event |
| 2014-15 |
8.75% |
|
| 2013-14 |
8.75% |
|
| 2012-13 |
8.50% |
|
| 2011-12 |
8.25% |
Dip |
| 2010-11 |
9.50% |
|
| 2009-10 |
8.50% |
|
| 2008-09 |
8.50% |
Global crisis |
| 2007-08 |
8.50% |
|
| 2006-07 |
8.50% |
|
| 2005-06 |
8.50% |
|
| 2004-05 |
9.50% |
|
| 2003-04 |
9.50% |
|
| 2002-03 |
9.50% |
|
| 2001-02 |
9.50% |
|
| 2000-01 |
11.00% |
Last double-digit |
The Golden Era (1980-2000)
| Financial Year |
Interest Rate |
Context |
| 1999-00 |
12.00% |
|
| 1998-99 |
12.00% |
|
| 1997-98 |
12.00% |
|
| 1996-97 |
12.00% |
|
| 1995-96 |
12.00% |
Peak maintained |
| 1990-91 |
12.00% |
|
| 1985-86 |
11.50% |
|
| 1980-81 |
10.00% |
|
Foundation Years (1952-1980)
| Financial Year |
Interest Rate |
| 1979-80 |
8.25% |
| 1974-75 |
7.50% |
| 1969-70 |
6.25% |
| 1964-65 |
5.25% |
| 1959-60 |
4.00% |
| 1952 (inception) |
3.00% |
EPF Rate vs Inflation
Real Returns Analysis
| Decade |
Avg EPF Rate |
Avg Inflation |
Real Return |
| 2020s |
8.2% |
5.5% |
2.7% |
| 2010s |
8.6% |
5.8% |
2.8% |
| 2000s |
8.8% |
5.6% |
3.2% |
| 1990s |
12.0% |
8.5% |
3.5% |
| 1980s |
10.5% |
8.8% |
1.7% |
Key insight: Real returns have remained relatively stable at 2-3%, even as nominal rates fell.
EPF vs Other Investments
Current Comparison
| Investment |
Return |
Tax Status |
Risk |
| EPF |
8.25% |
EEE* |
Very Low |
| PPF |
7.10% |
EEE |
Zero |
| Bank FD |
6.5-7.5% |
Taxable |
Zero |
| Debt Funds |
6-8% |
Slab rate |
Low |
| Equity (long-term) |
10-12% |
LTCG 12.5% |
High |
*EPF interest on contributions >₹2.5L is now taxable.
Historical Comparison with PPF
| Year |
EPF |
PPF |
Difference |
| 2025-26 |
8.25% |
7.10% |
+1.15% |
| 2020-21 |
8.50% |
7.10% |
+1.40% |
| 2015-16 |
8.80% |
8.70% |
+0.10% |
| 2010-11 |
9.50% |
8.60% |
+0.90% |
| 2000-01 |
11.00% |
11.00% |
0% |
EPF has consistently outperformed PPF since they diverged in 2011.
Why EPF Rates Fell
Factors Behind the Decline
| Factor |
Impact |
| Global interest rate decline |
Lower yields on bonds |
| EPFO investment constraints |
Must invest in govt securities |
| Lower inflation |
Real returns maintained |
| Larger corpus |
Harder to generate high returns |
EPFO Investment Pattern
| Asset Class |
Typical Allocation |
Return Profile |
| Govt Securities |
45-55% |
6.5-7.5% |
| Corporate Bonds |
35-45% |
7-9% |
| Equities (ETFs) |
5-15% |
Variable |
| Others |
5-10% |
6-8% |
Impact on Your Retirement Corpus
₹10,000/Month SIP for 30 Years
| EPF Rate |
Final Corpus |
Difference from 8% |
| 12% (1990s) |
₹3.49 Cr |
+₹2.06 Cr |
| 9.5% (2000s) |
₹2.10 Cr |
+₹67 L |
| 8.5% (2010s) |
₹1.63 Cr |
+₹20 L |
| 8.25% (current) |
₹1.52 Cr |
+₹9 L |
| 8.0% (baseline) |
₹1.43 Cr |
— |
What 0.5% Rate Change Means
For ₹50,000 monthly contribution over 25 years:
| Rate |
Corpus |
Impact of 0.5% Higher |
| 8.00% |
₹4.73 Cr |
— |
| 8.50% |
₹5.18 Cr |
+₹45 L |
| 9.00% |
₹5.68 Cr |
+₹50 L more |
Every 0.5% matters significantly over long periods.
Future Outlook
What Experts Predict
| Scenario |
Expected Rate |
Reasoning |
| Optimistic |
8.5-9% |
Economic growth, EPFO equity allocation |
| Base case |
8-8.5% |
Current trajectory |
| Pessimistic |
7.5-8% |
Global low-rate environment |
Factors That Could Increase Rates
| Factor |
Probability |
Impact |
| Higher equity allocation |
Medium |
+0.5-1% |
| Economic growth |
Medium |
+0.25-0.5% |
| Inflation spike |
Low |
Temporary increase |
Factors That Could Decrease Rates
| Factor |
Probability |
Impact |
| Global rate cuts |
Medium |
-0.25-0.5% |
| Bond yield decline |
Medium |
-0.25-0.5% |
| EPFO corpus growth |
High |
Marginal pressure |
Should You Rely on EPF Alone?
EPF as Foundation, Not Complete Plan
| Strategy |
Allocation |
Purpose |
| EPF (mandatory) |
12% of Basic |
Stable foundation |
| NPS (optional) |
₹50K/year |
Growth + tax benefit |
| Equity mutual funds |
10-20% of income |
Wealth creation |
| PPF |
₹1.5L/year |
Tax-free guarantee |
Retirement Math Reality
| Goal |
EPF Alone Can Provide |
Gap to Fill |
| ₹50K/month pension |
~₹35K (at 8.25%) |
₹15K from other sources |
| ₹1L/month pension |
~₹70K |
₹30K from other sources |
EPF Rate Announcement Timeline
| Event |
Typical Timing |
| EPFO meeting |
February-March |
| Rate recommendation |
March |
| Ministry approval |
March-April |
| Notification |
April-May |
| Interest credit |
March 31 (calculated monthly) |
When Interest Is Credited
| Calculation |
Monthly (on running balance) |
| Crediting |
Annually (March 31) |
| Rate applied |
Announced rate ÷ 12 |
Key Takeaways
| Point |
Implication |
| Rates have fallen from 12% to 8.25% |
Real returns stable at ~3% |
| EPF still beats PPF and FDs |
Best guaranteed return option |
| 8-8.5% expected medium-term |
Plan conservatively |
| Don't rely on EPF alone |
Diversify for growth |
| Interest on >₹2.5L taxable |
Cap VPF contributions |
Project your EPF corpus: Use our EPF Calculator to see how your contributions grow at current rates.
