The government has approved 8.1 per cent rate of interest on employees’ provident fund (EPF) deposits for 2021-22, which is expected to be credited around Diwali this year.
In March this year, the Employees’ Provident Fund Organisation (EPFO) decided to lower the interest on provident fund deposits for 2021-22 to 8.1 per cent from 8.5 per cent provided in 2020-21.
According to PTI, the Ministry of Labour and Employment has conveyed the approval of the central government to credit 8.1 per cent rate of interest for 2021-22 to each member of the EPF scheme. Now, after the ratification of the interest rate by the government, the EPFO would start crediting the fixed rate of interest for the fiscal into the EPF accounts.
Last year, the EPF interest rate had been generally credited into the subscribers’ account nearly Diwali or later due to a delay in approval from the finance ministry.
The 8.1 per cent EPF rate of interest is the lowest since 1977-78, when it stood at 8 per cent.
The 8.5 per cent interest rate on EPF deposits for 2020-21 was decided by the Central Board of Trustees (CBT) in March 2021.
It was ratified by the finance ministry in October 2021. Thereafter, the EPFO issued directions to field offices to credit the interest income at 8.5 per cent for 2020-21 into the subscribers’ account.
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 rate of interest in 2013-14 as well as 2014-15, higher than the 8.5 per cent for 2012-13. The rate of interest was 8.25 per cent in 2011-12.