The Central Government has fixed 8.1 percent interest rate on Employees’ Provident Fund (EPF) for the year 2021-22. This is the lowest interest rate in more than four decades. This decision will have an impact on about five crore subscribers.
Earlier in March, the Employees’ Provident Fund Organization (EPFO) had decided to reduce the interest on provident fund deposits to 8.1 per cent for 2021-22. In the year 2020-21, this rate was 8.5 percent.
According to an EPFO order issued on Friday, the Ministry of Labor and Employment shared the approval of the Central Government at 8.1 percent interest rate for 2021-22 for every member of the EPF scheme. The Labor Ministry had sent the proposal to the Finance Ministry for consent.
Now, after getting support from the government on the changed interest rate, EPFO will start depositing fixed interest rate for the financial year in EPF accounts.
EPF interest rate was eight percent in 1977-78
The 8.1 per cent EPF interest rate is the lowest since 1977-78, when it stood at eight per cent. The 8.5 percent EPF interest rate for 2020-21 was fixed by the Central Board of Trustees (CBT) in March 2021.
