PF Update: EPF interest rate of 8.1% approved by govt; Details here

In March, EPFO slashed the interest rate on employees' provident fund deposits to a four-decade low of 8.1 percent for the fiscal year 2021-22,

New Delhi: The central government has approved an 8.1 percent interest rate on employee provident fund deposits for the fiscal year 2021-22. This is announced after the Union Finance Ministry authorises the interest rate.

In March, the Employees' Provident Fund Organisation, or EPFO, slashed the interest rate on employees' provident fund deposits to a four-decade low of 8.1 percent for the fiscal year 2021-22, down from 8.5 percent the year before. On employee deposits to their retirement fund, this is the lowest interest rate since 1977-78. That year, the interest rate on employee provident funds was 8%.

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.