Retirement fund body EPFO on Saturday chose to bring down the interest on provident fund deposits for 2021-22 to a north of four-decade low of 8.1 percent for its around five crore endorsers, from 8.5 percent gave in 2020-21, sources said.
This is the least starting around 1977-78, when the EPF interest rate remained at 8%.
“The Employees’ Provident Fund Organization’s (Epfo’s) apex decision making body Central Board of Trustees has chosen to give 8.1 percent pace of revenue on Employees Provident Fund (EPF) for 2021-22 in its gathering hung on Saturday,” a source said.
The 8.5 percent interest rate on EPF deposits for 2020-21 was chosen by the Central Board of Trustees (CBT) in March 2021.
It was sanctioned by the money service in October 2021 and from there on, EPFO gave bearings to handle workplaces to credit the premium pay at 8.5 percent for 2020-21 into the endorsers’ account.
Presently, after the CBT choice, the interest rate on EPF deposits for 2021-22 will be shipped off the Ministry of Finance for simultaneousness. EPFO gives the pace of interest solely after it is approved by the government through the money service.
In March 2020, EPFO had brought down the interest rates on provident fund deposits to a seven-year low of 8.5 percent for 2019-20, from 8.65 percent accommodated 2018-19.
The EPF interest rate accommodated 2019-20 was the most minimal starting around 2012-13, when it was brought down to 8.5 percent.
EPFO had given 8.65 percent interest rates to its endorsers in 2016-17 and 8.55 percent in 2017-18.
The pace of interest was somewhat higher at 8.8 percent in 2015-16.
It had given 8.75 percent pace of interest rate in 2013-14 as well as 2014-15, higher than 8.5 percent for 2012-13.
The pace of interest was 8.25 percent in 2011-12.
