The government has cut interest rates on EPF for 2021-22. The Centre on Friday approved the reduction of rate of interest on the employees’ provident fund (EPF) deposits for 2021-22 – from 8.5 per cent to 8.1 per cent – for almost five crore subscribers of the Employees’ Provident Fund Organisation (EPFO). The decision, taken by the EPFO in March this year, brings the rate of interest on PF deposits to a more than four-decade low.
According to an official order of the retirement fund body, the Ministry of Labour and Employment conveyed the approval of the central government to credit 8.1 per cent rate of interest, instead of 8.5 per cent provided in 2020-21. The Union labour ministry had sent the proposal to the ministry of finance.
Interest rates at four-decade low
Finance Minister Sitharaman had said in the Rajya Sabha that the rate had not been reduced for 40 years. Today’s realities are what keep us in the context of the decisions that are being taken by the Central Board of EPFO. The proposal is yet to come to the finance ministry for approval. The EPFO had announced after the 230th meeting of the Central Board of Trustees in March that the PF interest fund would fetch a lower interest rate of 8.1 per cent, a four-decade low.
Let us know what was the interest rate in the past years-
FY 2015- 8.75
FY 2016- 8.80
FY 2017 – 8.65
FY 2018 – 8.55
FY 2019 – 8.65
FY 2020 – 8.50
FY 2021 – 8.50
FY 2022 – 8.10