It’s a good news that retirement fund body EPFO decided to increase the rate of interest on Provident Fund deposits to 8.75 percent for financial year 2013-14, which will benefit about 5 crore subscribers. It had provided 8.50 percent interest in the financial year 2012-13, which was higher than 8.25 percent interest announced in financial year 2011-12.

The Employees’ Provident Fund Organisation’s apex decision making body – Central Board of Trustees (CBT) – met to decide on the PF interest rate for this fiscal. Now you are going to get more on PFs after organisation fixes rate at 8.75 percent.

According to sources, the body had surplus funds, which enabled the interest rate to be increased from 8.5 percent in the previous financial year (2012-13).

The EPFO’s recommendation will be vetted by the Finance Ministry. Once the ministry approves the decision, the interest would be credited to the accounts of subscribers. According to sources, the decision to enhance the rate was taken in view of the forthcoming Lok Sabha polls.

The EPFO is estimated to have an income of Rs 20,796.96 crore in the current financial year. Payment of interest at the rate of 8.5 percent to subscribers would have required Rs 20,740 crore and left a surplus of Rs 56.96 crore, according to earlier projections.

You might want to read: EPF historical Interest Rates since year 1952

Good News! Interest rate on PF is 8.75% for 2013-14

4 thoughts on “Good News! Interest rate on PF is 8.75% for 2013-14

  • June 26, 2015 at 4:08 PM

    Hi Mr. Patra,

    First of all I congratulate you for running such an informative site.

    My query is as follows…

    I and my wife have taken a joint loan for purchasing a ready-built house. We both are salaried persons. The sale deed is in her name. As per your site, I cannot claim tax deductions unless I become a co-owner.

    How can I become a co-owner?

    1. My wife effects a 50% transfer deed in my name. I read in article 80c that if a person does so within 5 years of purchasing a house, he loses the claim to tax deduction. Is this true? Will my wife not be able to get tax deduction if she does so?

    2. If this is done and we claim deductions in the ratio of 50:50, will the 50% EMI be cut from my wife’s account or can I pay the whole of EMI from my account?

    Thanks in advance.

    • June 26, 2015 at 9:28 PM

      Hi Ekpal,

      Thank you for appreciating!

      This question doesn’t have any straight answer. With an argument your points can be put to justify your situations. If I assume while making the purchase you have done some part contributions & currently you are also serving loan repayments then in that case sharing the ownership as 50:50 will not make your spouse to loose 80C deductions benefits as availed earlier. But yes, when you start claiming the deduction, then not necessarily 50:50 of EMI, but to the extend of each of yours contribution upto given limit of allowable deductions.

      • June 27, 2015 at 12:50 PM

        Thanks for the answer. Sir.

        Is it for sure that my wife can transfer me 50% of the property before 5 years of the purchase of property?

  • June 27, 2015 at 12:52 PM


    Thanks for the answer. Sir.

    Is it for sure that my wife can transfer me 50% of the property before the expiry of 5 years from the purchase of property?


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