Govt ratifies 8.1 pc EPF interest rate for 2021-22
Now that the rates have been ratified by the government, the EPFO would start crediting the fixed rate of interest for the fiscal into the EPF accounts.
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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 around five crore subscribers of retirement fund body EPFO.
Earlier, this year in March, 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.
As per the order issued, 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.
Now, after the ratification of the interest rate by the government, the EPFO would begin crediting the fixed rate of interest for the fiscal into the EPF accounts.
This 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.
It was ratified by the finance ministry in October 2021. The EPFO, thereafter issued directions to field offices to credit the interest income at 8.5 per cent for 2020-21 into the subscribers’ account.