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.
On Saturday, EPFO decided to lower the interest on provident fund deposits for 2021-22 to 8.1 per cent. (Photo: File)
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.
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.
RATES OVER THE YEARS
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.
The EPF interest rate provided for 2019-20 was the lowest since 2012-13, when it was brought down to 8.5 per cent.
EPFO had provided 8.65 per cent interest rate to its subscribers in 2016-17 and 8.55 per cent in 2017-18.
The rate of interest was slightly higher at 8.8 per cent in 2015-16.
It had given 8.75 per cent rate of interest in 2013-14 as well as 2014-15, higher than 8.5 per cent for 2012-13.
The rate of interest was 8.25 per cent in 2011-12.
(With inputs from PTI)
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