EPFO Interest Rate for 2021-22 Reduced, Lowest in More Than 4 Decades; Check How much is Rate

The central board of trustees of the Employees Provident Fund Organisation (EPFO) has approved 8.10 percent as the rate of interest on PF deposits for 2021-22, the lowest in more than four decades, taking a significant hit to the earnings of over sixty million subscribers.

In 1977-78, EPFO credited an interest rate of 8.0 percent. Since then, it has been 8.25 percent or higher.

The retirement fund organisation credited 8.5 percent in 2019-20 and 2020-21, compared to 8.65 percent in 2018-19, 8.55 percent in 2017-18, 8.65 percent in 2016-17, and 8.8 percent in 2015-16.

The decision was made despite strong opposition from trade unions at the EPFO’s board meeting in Guwahati on Saturday. EPFO’s central board of trustees, or CBT, is a tripartite body comprised of representatives from the government, workers, and employers, and its decisions are binding on EPFO. It is led by the Minister of Labor.

The finance ministry, on the other hand, must vet the interest rate declared by CBT before it is notified. After being notified, the interest income is credited to the subscribers’ accounts.

The finance ministry has been urging the labor ministry to reduce the interest rate on provident deposits in order to bring them in line with other small savings schemes.