The Central Board of Trustees, EPFO’s top decision-making body, will discuss interest rates on employees’ future fund deposits for 2021-22 at its meeting next month.
“The Employees Provident Fund Organization (EPFO) CBT meeting will be held in Guwahati in March where interest rate proposals for 2021-22 will be listed as it is towards the end of the financial year,” Union Labor Minister Bhupendra Yadav told PTI. About the rate.
Asked if the EPFO would maintain an interest rate of 8.5 per cent for 2020-21 for 2021-22, Yadav, who was also the head of CBT, said the decision would be based on revenue estimates for the financial year.
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 approved by the Ministry of Finance in October 2021 and subsequently, the EPFO issued instructions for credit to field offices. 8.5 percent interest income on customer accounts for 2020-21.
Once the CBT sets the interest rate on an EPF deposit for a financial year, it is sent to the Ministry of Finance for approval. EPFO pays interest rates only after approval by the government through the Ministry of Finance.
In March 2020, EPFO cut interest rates on provident fund deposits to a seven-year low of 8.5 percent for 2019-20, from 8.65 percent for 2018-19. The EPF interest rate paid for 2019-20 was the lowest since 2012-13, when it was brought down to 8.5 percent.
EPFO offered its customers interest rates of 8.65 percent in 2016-17 and 8.55 percent in 2017-18. In 2015-16, the interest rate was slightly higher at 8.8 percent. It has given interest rates of 8.75 per cent in 2013-14 as well as in 2014-15, which is higher than 8.5 per cent in 2012-13. In 2011-12, the interest rate on provident funds was 8.25 percent.
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