The document discusses interest rates on provident fund (PF) deposits in India from 1952 to 2014. A chart shows that while nominal PF rates have remained around 10%, the real or inflation-adjusted rates have fallen into negative territory for many years. Although the Employees' Provident Fund Organisation recently increased PF rates by 0.25%, this small rise does not actually help taxpayers given high inflation. The increase will provide only limited relief to ordinary citizens.

1. PF Interest Rates and Inflation
15.00%
10.00%
5.00%
0.00%
-5.00%
-10.00%
EPF Rates
Real EPF rate for Industrial Workers
Real EPF rate for Urban non-manual employees
Real EPF rate for Agricultural labourers
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