Employees’ Provident Fund interest rates have been reduced from 8.5 percent to 8.1 percent for 2021-22.
The brand-new rates of interest are the most affordable in about four decades, which will certainly be a problem for about 5 crore EPFO (Employees Provident Fund Organization) customers. This is the most affordable rate of interest in nearly four years, dating back to 1977-78, when the EPF rate of interest was 8%.
“The Employees’ Provident Fund Organization’s (EPFO’s) apex decision-making body, the Central Board of Trustees, has decided to provide an 8.1 percent rate of interest on Employees Provident Fund (EPF) for 2021-22 in its meeting held on Saturday,” Guwahati said. The board’s recommendation will be forwarded to the finance ministry as soon as possible. According to labour ministry sources, this is the lowest rate since 1977-78, when it was 8%.
When the finance ministry approves the board’s decision, EPFO will instruct its regional offices to credit the interest earnings calculated at the new rate of 8.1 percent for 2021-22 in the customers’ accounts.
EPFO reduced the interest rate on provident fund deposits to a seven-year low of 8.5 percent for 2019-20, down from 8.65 percent in 2018-19.
The 2019-20 EPF interest rate was the lowest since 2012-13, when it was reduced to 8.5 percent.
EPFO offered 8.65 percent interest rate to its subscribers in 2016-17 and 8.55 percent interest rate in 2017-18. In 2015-16, the interest rate was slightly higher at 8.8 percent.
It offered an interest rate of 8.75 percent in 2013-14 and 2014-15, up from 8.5 percent in 2012-13. In 2011-12, the interest rate was 8.25 percent.
