Government has approved 8.1 percent interest rate for EPF deposits for 2021-22
New Delhi:
The government has approved an 8.1 percent interest rate on Employees Provident Fund (EPF) deposits for 2021-22 – a low of more than four decades – for about five crore subscribers to the pension fund organization Employees Provident Fund Organization (EPFO).
Earlier in March of this year, EPFO had decided to cut the rate on deposits from provisioning funds for 2021-22 from 8.5% in 2020-21 to 8.1 percent.
According to an EPFO office order issued Friday, the Ministry of Labor and Employment has authorized the central government to credit 8.1% interest for 2021-22 to each member of the EPF scheme.
The Ministry of Labor had sent the proposal to the Ministry of Finance for approval.
Now, after the government’s ratification of the interest rate, the EPFO would begin crediting the fixed interest rate for the fiscal to the EPF accounts.
The EPF rate of 8.1 percent is the lowest since 1977-78, when it stood at 8 percent.
The 8.5 percent interest on EPF deposits for 2020-21 was set in March 2021 by the Central Supervisory Board (CBT).
It was ratified by the Ministry of Finance in October 2021. Thereafter, the EPFO instructed field offices to deposit the 8.5 percent interest income for 2020-21 into subscribers’ accounts.
By March 2020, the EPFO had cut the interest rate on provident fund deposits to a seven-year low of 8.5 percent for 2019-20, from 8.65 percent in 2018-19.
The EPF rate for 2019-20 was the lowest since 2012-13, when it was cut to 8.5 percent.
EPFO had provided 8.65 percent interest to its subscribers in 2016-17 and 8.55 percent in 2017-18.
In 2015-16, the interest rate was slightly higher at 8.8 percent. It had given 8.75 percent interest in 2013-14 and 2014-15, higher than the 8.5 percent for 2012-13. The interest rate was 8.25 percent in 2011-12.
