Centre approves 8.1% EPF interest rate for 2021-22, lowest in four decades
India Today
The Ministry of Labour and Employment has conveyed approval of the Centre to credit 8.1 per cent rate of interest for 2021-22 to each member of the EPF scheme.
The government has approved 8.1 per cent rate of interest on employees' provident fund (EPF) deposits for 2021-22 -- an over four-decade low -- for about five crore subscribers of retirement fund body EPFO.
Earlier in March this year, the Employees' Provident Fund Organisation (EPFO) had decided to lower the interest on provident fund deposits for 2021-22 to 8.1 per cent from 8.5 per cent provided in 2020-21.
According to an EPFO office order issued on Friday and reviewed by PTI, the Ministry of Labour and Employment has conveyed approval of the central government to credit 8.1 per cent rate of interest for 2021-22 to each member of the EPF scheme.
The labour ministry had sent the proposal to the Ministry of Finance for its concurrence.
Now, after the ratification of the interest rate by the government, the EPFO would start crediting the fixed rate of interest for the fiscal into the EPF accounts.
The 8.1 per cent EPF rate of interest is the lowest since 1977-78, when it stood at 8 per cent.
The 8.5 per cent interest rate on EPF deposits for 2020-21 was decided by the Central Board of Trustees (CBT) in March 2021.
