The Employees’ Provident Fund Organization has given a big blow this time. The Central Board of Trustees of EPFO has reduced the interest rate on 6 crore EPF accounts for 2021-22. It has come down to the lowest level in four decades.
There is bad news for 6 crore employed people. The Employees’ Provident Fund Organization (EPFO) has given a big blow this time before Holi. The Central Board of Trustees of EPFO has reduced the interest rate on PF deposits for 2021-22. The interest rate approved has been reduced to 8.10%, which is the lowest in four decades. It will be sent to the Finance Ministry for approval.
News agency PTI said that this is the lowest since 1977-78, during which the interest rate on EPF used to be 8%. The Central Board of Trustees, the apex decision-making body of the Employees’
Provident Fund Organization, in its meeting held on Saturday, decided to give 8.1% interest rate on Employees’ Provident Fund (EPF) account for 2021-22.
Let us inform that in March last year, the Central Board of Trustees (CBT) had fixed 8.5% interest rate on EPF deposits for 2020-21. This was approved by the Finance Ministry in October 2021 and thereafter the EPFO directed the field offices to credit the interest income at 8.5% in the account of subscribers for 2020-21.
Now after the decision of CBT, the new interest rate on EPF deposits for 2021-22 will be sent to the Finance Ministry for consent. The EPFO pays interest only after the government gets its permission through the Ministry of Finance.
In March 2020, EPFO had reduced the interest rate on provident fund deposits to 8.5% from 8.65% for 2018-19. The EPF interest rate for 2019-20 was the lowest since 2012-13, when it was reduced to 8.5%.
EPFO had given 8.65 percent interest to its members in 2016-17 and 8.55 percent in 2017-18. The interest rate was slightly higher at 8.8 per cent in 2015-16.
The organization 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%.
