New Delhi: Retirement Fund Body EPFO Saturday decided to reduce the interest Provident Fund For its nearly five crore customers, deposits for 2021-22 are more than a four-decade low of 8.1 per cent, up from 8.5 per cent provided in 2020-21, sources said.
This is the lowest since 1977-78, when the EPF interest rate was 8 per cent.
A source said, “The Central Board of Trustees, the apex decision-making body of the Employees’ Provident Fund Organization (EPFO), in its meeting held on Saturday, decided to provide 8.1 percent interest rate on Employees’ Provident Fund (EPF) for 2021-22 Is.” ,
The Central Board of Trustees (CBT) had fixed an interest rate of 8.5 per cent on EPF deposits for 2020-21 in March 2021.
This was confirmed by the Finance Ministry in October 2021 and thereafter, the EPFO issued directions to the field offices to credit the interest income at 8.5 per cent in the account of subscribers for 2020-21.
Now after the decision of CBT, the interest rate on EPF deposit for 2021-22 will be sent to the Finance Ministry for consent. The EPFO provides the interest rate only after the government confirms it through the Ministry of Finance.
In March 2020, the EPFO had reduced the interest rate on provident fund deposits to a seven-year low of 8.5 per cent for 2019-20 from 8.65 per cent provided for 2018-19.
The EPF interest rate provided for 2019-20 was the lowest since 2012-13, when it was reduced to 8.5 per cent.
EPFO had provided 8.65 per cent interest rate to its subscribers in 2016-17 and 8.55 per cent in 2017-18.
The interest rate was slightly higher at 8.8 per cent in 2015-16.
It had given 8.75 per cent interest in 2013-14 as well as 2014-15, which is higher than 8.5 per cent in 2012-13.
The interest rate in 2011-12 was 8.25 per cent.
This is the lowest since 1977-78, when the EPF interest rate was 8 per cent.
A source said, “The Central Board of Trustees, the apex decision-making body of the Employees’ Provident Fund Organization (EPFO), in its meeting held on Saturday, decided to provide 8.1 percent interest rate on Employees’ Provident Fund (EPF) for 2021-22 Is.” ,
The Central Board of Trustees (CBT) had fixed an interest rate of 8.5 per cent on EPF deposits for 2020-21 in March 2021.
This was confirmed by the Finance Ministry in October 2021 and thereafter, the EPFO issued directions to the field offices to credit the interest income at 8.5 per cent in the account of subscribers for 2020-21.
Now after the decision of CBT, the interest rate on EPF deposit for 2021-22 will be sent to the Finance Ministry for consent. The EPFO provides the interest rate only after the government confirms it through the Ministry of Finance.
In March 2020, the EPFO had reduced the interest rate on provident fund deposits to a seven-year low of 8.5 per cent for 2019-20 from 8.65 per cent provided for 2018-19.
The EPF interest rate provided for 2019-20 was the lowest since 2012-13, when it was reduced to 8.5 per cent.
EPFO had provided 8.65 per cent interest rate to its subscribers in 2016-17 and 8.55 per cent in 2017-18.
The interest rate was slightly higher at 8.8 per cent in 2015-16.
It had given 8.75 per cent interest in 2013-14 as well as 2014-15, which is higher than 8.5 per cent in 2012-13.
The interest rate in 2011-12 was 8.25 per cent.