Retirement fund body EPFO sets interest rate at over four-decade low of 8.1% for 2021-22
India Today
The retirement fund body EPFO set the interest rate for 2021-22 at 8.1 per cent, which is the lowest it has been in more than four decades.
The retirement fund body EPFO has set the interest rate on provident fund deposits for 2021-22 at 8.1 per cent, which is the lowest it has been in more than four decades. In 1977-78, the EPF interest rate stood at 8 per cent.
The interest rate this year is down from 8.5 per cent in 2020-2021.
This decision was taken after EPFO trustees met under the chairmanship of Union labour minister Bhupender Yadav in Guwahati.
"The Employees' Provident Fund Organisation's (EPFO's) apex decision-making body Central Board of Trustees has decided to provide 8.1 per cent rate of interest on Employees Provident Fund (EPF) for 2021-22 in its meeting held on Saturday," a source said.
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After the central board's decision, the interest rate on EPF deposits for 2021-22 will now be sent to the Ministry of Finance for concurrence. EPFO provides the rate of interest to its five crore subscribers only after it is ratified by the government through the finance ministry.
In March 2020, EPFO had lowered the interest rate on provident fund deposits to a seven-year low of 8.5 per cent for 2019-20, from 8.65 per cent provided for 2018-19.
