EPF interest rate: The central government has supported an 8.1% pace of revenue on employees’ provident fund (EPF) deposits for 2021-22 a more than forty years low for around five crore subscribers of retirement reserve body EPFO. Prior to March this year, the Employees’ Provident Fund Organization (EPFO) had chosen to bring down the interest on the provident fund for 2021-22 to 8.1% from 8.5% given in 2020-21.
As per an EPFO office request given on Friday and investigated by PTI, the Ministry of Labor and Employment has passed endorsement of the central government to credit an 8.1% pace of interest for the financial year 2021-22 to every individual from the EPF conspire.
The Union government on Friday approved an interest cost of 8.1% on employee provident fund (EPF) deposits for the Financial Year 2022, the most reduced in the beyond forty years, in a choice expected to affect 60 million subscribers.
The labor ministry had sent the proposal to the Ministry of Finance for its concurrence. Now, after the endorsement of the interest cost by the public authority, the EPFO would begin crediting the decent pace of interest for the money into the EPF accounts. The 8.1% EPF pace of revenue is the lowest starting around 1977-78 when it remained at 8%.
The Ministry of Labor and Employment conveyed the approval of the central government to credit an 8.1% pace of interest for the financial year 2021-22 to every individual from the EPF scheme, as per a request given by the EPFO official on June 3. The Labor Ministry had sent the proposal to the Ministry of Finance for its endorsement. After the approval by the public authority, the EPFO will begin crediting the proper pace of interest for the monetary year into the EPF accounts.
The 8.5% interest rate on EPF deposits for the financial year 2020-21 was chosen by the Central Board of Trustees (CBT) in March 2021. It was approved by the finance ministry in October 2021. From that point, the EPFO issued directions to field workplaces to credit the interest income at 8.5% for the year 2020-21 into the endorsers’ record.
An EPFO legal administrator, K E Raghunathan, who addresses employers, said the speed with which the ministries of labor and finance have cleared the interest cost is truly apparent, taking into account the critical need for assets in the possession of representatives and it will assist them with meeting costs like educational necessities of their children.
In March 2020, the EPFO had brought down the interest rate on provident fund (PF) stores to a seven-year low of 8.5% for the year 2019-20, from 8.65% in the year 2018-19. The EPF financing cost accommodated for the year 2019-20 was the most minimal starting around the year 2012-13, when it was carried down to 8.5%.
EPFO had given 8.65% interest rate to its subscribers in the year 2016-17 and 8.55% in the year 2017-18. The rate of interest was somewhat higher at 8.8% in year 2015-16. It had given 8.75% pace of interest in the year 2013-14 as well as 2014-15, higher than the 8.5% for the year 2012-13. The pace of interest was 8.25% in the year 2011-12.