Finance Ministry has given its nod for 8.1 per cent rate on Employees’ Provident Fund (EPF) deposits for fiscal year 2021-22. Now, this interest will be credited to accounts of over 6 crore subscribers.
The rate of 8.1 per cent interest is the lowest since 1977-78, when it stood at 8 per cent. In March, the Central Board of Trustee (CBT), the apex body of EPFO recommended lowering the interest rate to 8.1 per cent from 8.5 per cent of FY 2020-21.
An office order, issued by EPFO on Friday said: “The Ministry of Labour and Employment has conveyed approval of the central government to credit 8.1 per cent interest for 2021-22 to each member of the EPF scheme.” Approval of the Central Government here refers to nod by the Finance Ministry. Now, after ratification, the EPFO would start crediting the interest for the fiscal into the EPF accounts.
In March 2020, the 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 in 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 in 2013-14 as well as in 2014-15, higher than the 8.5 per cent for 2012-13. The rate of interest was 8.25 per cent in 2011-12.