EPF interest rate 2021-22 finalised at 8.1%, lowest in decades
Synopsis
The Employees' Provident Fund Organisation (EPFO) decided on Saturday to pay 8.1 percent interest on provident fund deposits for the fiscal year 2021-22. The decision was made today during a meeting of EPFO's central board of trustees.
The Employees' Provident Fund Organisation (EPFO) decided on Saturday to pay 8.1 percent interest on provident fund deposits for the fiscal year 2021-22. The decision was made today during a meeting of EPFO's central board of trustees.
This is the lowest rate since 1977-78, when the EPF interest rate was 8%. "In its meeting on Saturday, the Employees' Provident Fund Organisation's (EPFO's) highest decision-making body Central Board of Trustees resolved to offer an 8.1 percent interest rate on Employees Provident Fund (EPF) for 2021-22," a source said.
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Previously, the retiring body maintained the interest rate on provident fund deposits at 8.5 percent for the fiscal year 2020-21, despite significant withdrawals as a result of Covid's impact on people's financial resources. Following the Covid-19 epidemic, the retirement fund body faced large withdrawals and lesser contributions.
EPFO reduced the interest rate on provident fund deposits to a seven-year low of 8.5 perc ent for 2019-20, down from 8.65 per cent in 2018-19. The 2019-20 EPF interest rate was the lowest since 2012-13, when it was reduced to 8.5 per cent. EPFO offered 8.65 percent interest rate to its customers in 2016-17 and 8.55 per cent interest rate in 2017-18. In 2015-16, the interest rate was somewhat higher at 8.8 per cent.
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