EPF interest rate for 2021-22 reduced to 8.1% lowest since 1977-78
The EPF interest rate provided for 2019-20 was the lowest since 2012-13, when it was brought down to 8.5 %.
Retirement fund body Employees' Provident Fund Organisation (EPFO) on Saturday decided to lower the interest on provident fund deposits for 2021-22, according to the PTI news agency.
The EPFO's apex decision-making body Central Board of Trustees has decided to provide an 8.1% rate of interest on the Employees Provident Fund (EPF) for 2021-22. This is the lowest since 1977-78 when the EPF interest rate stood at 8%, the news agency added.
"The Employees' Provident Fund Organisation's (EPFO's) apex decision making body Central Board of Trustees has decided to provide 8.1 % rate of interest on Employees Provident Fund (EPF) for 2021-22 in its meeting held on Saturday," the agency said quoting a source.
It must be noted that the Central Board of Trustees (CBT) in March last year had decided the 8.5 % interest rate on EPF deposits for 2020-21.
It was ratified by the finance ministry in October 2021 and thereafter, EPFO issued directions to field offices to credit the interest income at 8.5 % for 2020-21 into the subscribers' account.
Now, after the CBT decision, the interest rate on EPF deposits for 2021-22 will be sent to the Ministry of Finance for concurrence. EPFO provides the rate of interest only after it is ratified by the government through the finance ministry.
In March 2020, EPFO had lowered the interest rate on provident fund deposits to a seven-year low of 8.5 % for 2019-20, from 8.65 % provided for 2018-19.
The EPF interest rate provided for 2019-20 was the lowest since 2012-13, when it was brought down to 8.5 %.
EPFO had provided 8.65 % interest rate to its subscribers in 2016-17 and 8.55 % in 2017-18. The rate of interest was slightly higher at 8.8 % in 2015-16. It had given 8.75 % rate of interest in 2013-14 as well as 2014-15, higher than 8.5 % for 2012-13.The rate of interest was 8.25 % in 2011-12.
