EPF interest rate at 8.10% is lowest in decades, know what FM Nirmala Sitharaman said

Central Board recommended 8.10 percent annual rate of interest to be credited on EPF accumulations in members' accounts for the financial year 2021-22 (ending on March 31, 2022). 

New Delhi: The Central Board of Trustees (CBT) earlier this month announced the interest rate on EPF for the 2021-22 fiscal.

Interest rate on employees' provident fund deposits was cut to a four-decade low of 8.1 per cent for the 2021-22 fiscal from 8.5 per cent in the previous year. This is the lowest interest rate since 1977-78 on deposits that employees make towards their retirement fund. Interest rate on employees provident fund that year stood at 8 per cent.

Central Board recommended 8.10 percent annual rate of interest to be credited on EPF accumulations in members' accounts for the financial year 2021-22 (ending on March 31, 2022). 

The EPFO paid 8.5 per cent interest rate to its subscribers in 2020-21, the same as in the previous year. The EPF rate was 8.65 per cent in 2018-19 and 8.55 per cent in 2017-18. In 2016-17, the EPF interest rate was at 8.65 per cent.

Meanwhile, Finance Minister Nirmala Sitharaman speaking during a debate in the Rajya Sabha on Monday (March 21) said that that the decision was made by the EPFO`s apex decision making body, Central Board of Trustees, to provide 8.1 per cent rate of interest on Employees Provident Fund (EPF) for 2021-22.