PF interest rate Govt approves 8.1 pc interest rate on PF deposits for 2021-22
New Delhi: The Centre Friday notified 8.1 percent interest on Employees' Provident Fund (EPF) deposits, paving the way for crediting the interest into the accounts of 60 million EPFO account holders for 2021-22.
The Labour Ministry made the announcement following the nod by the Finance Ministry, which was earlier than usual.
In the previous years, the interset rate had been generally credited into the account of the subscribers around the time of Diwali due to delay in approval by the Finance Ministry.
The 8.1 percent interest rate is the lowest in four decades and significantly lower than 8.5 percent notified in 2019-20 and 2020-21.
Back in 1977-78, EPFO had credited an interest rate of 8.0 percent; since then it has been either 8.25 percent or more.
The decision to slash interest rate from 8.5% to 8.1% was taken at the EPFO’s board meeting in Guwahati in March this year.
The interest rate of 8.1 percent has been declared based on EPFO’s estimated income for the year at Rs 76,768 crore and this will leave the retirement fund body with a surplus of Rs 450 crore.
However, maintaining an interest rate of 8.5 percent would have left EPFO with a deficit of Rs 3,500 crore.
In 2021-22, EPFO’s corpus has shot up from Rs 8.29 lakh crore in 2020-21 to Rs 9.4 lakh crore in 2021-22.
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