The Board of Directors of EPF fix the rate of interests on PF deposits while considering the total PF Deposit, total investment, total interest or dividend received from investments and the administrative expenses. Prior to1985/86 the rate was revised several times, however from 1985/86 to 1998/99 it was stable at 11 percent.
After that a declining trend appeared on borrowing as well as lending rates of the banking and financial sector in Nepal. Being a financial sector organization, this has also affected EPF significantly and it has been forced to adjust its interest rates accordingly as per the prevailing market scenario. The current rate of interest on PF Deposits is 5.25 percent.
The following table shows the years of revision and revised rates of interest from 1962/63 to 2002/2003:
|
Fiscal
Year |
Interest
Rate |
|
1962/1963 |
3.50% |
|
1968/1969 |
4.50% |
|
1972/1973 |
6.00% |
|
1974/1975 |
10.00% |
|
1985/1986 |
11.00% |
|
1999/2000 |
10.00% |
|
2000/2001 |
9.00% |
|
2001/2002 |
8.00% |
|
2002/2003 |
7.25% |
|
2003/2004
|
6.50%
|
|
2004/2005
|
5.50%
|
|
2005/2006
|
5.25%
|
|
2006/2007
|
5.25%
|