EPF interest rate slashed to 8.1 % from 8.5 %
According to labour ministry officials, this is the lowest number since 1977-78, when it was 8%..The decision of cutting interest rate impact, five crore subscribers of employees provident fund organizations(EPFO).
New Delhi: The employees' provident fund interest rate was reduced from 8.5 percent to 8.1 percent for 2021-22 on Saturday.
According to labour ministry officials, this is the lowest number since 1977-78, when it was 8%..The decision of cutting interest rate impact, five crore subscribers of employees provident fund organizations(EPFO).
The decision was taken during a meeting of the EPFO's central board of trustees in Guwahati. The board's suggestion will be forwarded to the finance ministry shortly.
The new rate of interest would be credited to subscribers once the Union Finance Ministry approves the board's decision. The EPFO would order its field offices to credit the interest income calculating at the new rate of 8.1 percent for the year 2021-22 in the subscribers' accounts.
In March 2020, EPFO had lowered the interest rate on PF deposits to a seven-year low of 8.5 percent for 2019-20, it was 8.65 percent in 2018-19. In 2020-21, the interest rate was 8.5 percent.
The EPF interest rate provided for 2019-20 was the lowest since 2012-13 when it was brought down to 8.5 percent.
