The Employees’ Provident Fund Organization has fixed the interest rates at 8.10 per cent for the last financial year, which is the lowest in four decades. Now the effort of the organization is to pay the interest at this rate as soon as possible, so that the employees doing the PF settlement do not have to pay the higher rate of interest.
New Delhi. The Employees’ Provident Fund Organization (EPFO) can soon give good news to its crores of employees. The organization has already fixed the interest rates for the financial year 2021-22 and now the interest money will start coming in the accounts soon.
According to media report , EPFO has fixed 8.10 percent interest on PF for the last financial year, which will start being transferred to the accounts of employees this month. Although, there has been no statement from EPFO or the government about this, but speculations have been made earlier that this time the PF interest money will be transferred soon. If we talk about last year, then the interest money started coming around Diwali.
The money can come by the end of this month,
The employees have kept the hope of getting the money in the account only after the interest rates are fixed. According to the news coming in the media, then EPFO will start transferring money by June 30. However, the approval of the Finance Ministry is yet to be taken on fixing the interest rates. But, it is believed that the Finance Ministry will accept the recommendation of 8.10 percent interest rate made by the EPFO.
Lowest interest rate in four decades
EPFO has decided to give 8.10 percent interest to employees for the last financial year, which is the lowest interest in four decades i.e. 40 years. Earlier in 2020-21, employees got 8.5 percent interest on PF. Now about 6 crore employees are waiting to get the revised interest. EPFO was paying 8.65 percent interest on PF in 2018-19. A year later, it was reduced to 8.5 per cent in 2019-20, which continued in 2020-21 as well.
So expect interest to come soon
Experts say that this time the EPFO is preparing to put the interest in the account soon, because the rates are very low. Also, the employees who are currently settling their PF have to pay at the old rate of interest, because at present the same rate is applicable on the PF account. In such a situation, EPFO has to pay more interest of 0.40 percent. Once the new rates are implemented and the interest is paid at this rate, then the PF will have to be settled at 8.10 per cent from now on and the government will save a lot of money.
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