EPFO: For the financial year 2021-22, it was proposed to reduce the interest rate on Employees’ Provident Fund (EPF) deposits to 8.1 percent from the rate of 8.5 percent in the previous financial year. This is the lowest interest rate in more than four decades.
EPFO: For the financial year 2021-22, it was proposed to reduce the interest rate on Employees’ Provident Fund (EPF) deposits to 8.1 percent from the rate of 8.5 percent in the previous financial year. This is the lowest interest rate in more than four decades. Earlier, the interest rate on EPF was the lowest at 8 per cent in 1977-78. The EPFO has fixed the interest rate for its nearly five crore members for the current financial year ending March 31.
The meeting was held on Saturday,
a source said, “The Central Board of Trustees, the apex decision-making body of EPFO, met on Saturday, in which it was decided to keep the interest rate on EPF at 8.1 percent for 2021-22.”
Sources said that the interest rate on the money deposited with the EPFO is fixed on the basis of its income. Deposits have grown by 13 per cent, while interest income has grown by only 8 per cent.
The Central Board of Trustees (CBT) took the decision in March 2021 to keep the interest rate on EPF deposits at 8.5 for the year 2020-21. It was approved by the Finance Ministry in October 2021. Now after the recent decision of CBT, the interest rate information on EPF deposit for 2021-22 will be sent to the Finance Ministry for approval.
Interest rates lowest in four decades In
March 2020, the EPFO had decided to reduce the interest rate on provident fund deposits to 8.5 percent in seven years for 2019-20, which was 8.65 percent in 2018-19 and 8.55 percent in 2017-18. Was. According to reports, this interest rate fixed by the EPFO is the lowest since 1977-78 for more than four decades. When the interest rate of EPF was 8 percent.
According to media reports, if your salary is 50 thousand rupees, then Rs 1.29 lakh will be deposited annually in your PF account . On this, according to the interest rate of 8.5%, you would have got an interest of Rs 10,965. But now according to the interest rate of 8.1 percent, you will get an interest of Rs 10,449. Accordingly, the annual interest income on your PF will decrease by Rs 516.
