Govt approves four-decade low 8.1% curiosity on EPF deposits

The Union authorities has accredited an rate of interest of 8.1 per cent on staff’ provident fund (EPF) deposits for 2021-22 for about 5 crore subscribers of retirement fund physique — Employees’ Provident Fund Organisation (EPFO).

The charge of curiosity is the bottom since 1977-78 when it stood at 8 per cent.

Earlier in March, the EPFO had determined to chop the curiosity on PF deposits from 8.5 per cent offered in 2020-21 to eight.1 per cent for 2021-22.

According to an EPFO workplace order issued on Friday, the Ministry of Labour and Employment has conveyed approval of the central authorities to credit score 8.1 per cent charge of curiosity for 2021-22 to every member of the EPF scheme.

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The labour ministry had despatched the proposal to the Ministry of Finance for its concurrence. After the federal government’s consent to the rate of interest, the EPFO would now begin crediting the fastened charge of curiosity for the fiscal into the EPF accounts.

The 8.1 per cent EPF charge of curiosity is the bottom since 1977-78, when it stood at 8 per cent.

The 8.5 per cent rate of interest on EPF deposits for 2020-21 was determined by the Central Board of Trustees (CBT) in March 2021 and was accredited by the finance ministry in October 2021.

In March 2020, the EPFO had lowered the rate of interest 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.

EPFO had offered 8.65 per cent rate of interest to its subscribers in 2016-17 and eight.55 per cent in 2017-18.

The charge of curiosity was barely increased at 8.8 per cent in 2015-16. It had given 8.75 per cent charge of curiosity in 2013-14 in addition to 2014-15, increased than the 8.5 per cent for 2012-13. The charge of curiosity was 8.25 per cent in 2011-12.

–With inputs from PTI