Govt approves 8.1% EPF interest rate for 2021-22, lowest since 1977-78

[ad_1]

Photo source: PTI

Government approves 8.1 percent interest rate on Employees Provident Fund (EPF) deposits for 2021-22

The government has approved an interest rate of 8.1 percent on Employees Provident Fund (EPF) deposits for 2021-22 – less than four decades – for about 50 million customers of the retirement fund company EPFO.

At the beginning of March this year, the Employees Provident Fund Organization (EPFO) decided to reduce the interest rate on provident fund deposits for 2021-22 from 8.5 per cent in 2020-21 to 8.1 per cent.

As per the EPFO ​​office order issued on Friday and reviewed by PTI, the Ministry of Labor and Employment has approved the central government to provide loans at 8.1 per cent interest to each member of the EPF scheme for 2021-22.

The Ministry of Labor has sent a proposal to the Ministry of Finance for consent.

Now, after the interest rate approval by the government, EPFO ​​will start crediting the fixed interest rate to EPF accounts for the financial year.

The 8.1 percent EPF interest rate is the lowest since 1977-78, when it stood at 8 percent. The 8.5 per cent interest rate on EPF deposits for 2020-21 was set by the Central Board of Trustees (CBT) in March 2021.

It was approved by the Ministry of Finance in October 2021 Subsequently, the EPFO ​​directed the field offices to deposit 8.5 per cent interest income into the customer’s account for 2020-21.

An EPFO ​​trustee, K Raghunathan, who represents the employers, said the speed at which the Ministry of Labor and Finance had cleared interest rates was commendable, considering the need for funds in the hands of workers and would help them meet their expenses. As the educational needs of their children.

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 in 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. The interest rate in 2011-12 was 8.25 percent.

Latest business news

.

[ad_2]

Leave a Reply

Your email address will not be published.