Authorities has authorized 8.1 per cent charge of curiosity on workers’ provident fund (EPF) deposits for 2021-22 – an over four-decade low – for about 5 crore subscribers of retirement fund physique Workers Provident Fund Organisation (EPFO).
Earlier in March this yr, EPFO had determined to decrease the curiosity on provident fund deposits for 2021-22 to eight.1 per cent from 8.5 per cent offered in 2020-21.
In keeping with an EPFO workplace order issued on Friday, the Ministry of Labour and Employment has conveyed approval of the central authorities to credit score 8.1 per cent charge of curiosity for 2021-22 to every member of the EPF scheme.
The Labour Ministry had despatched the proposal to the Ministry of Finance for its concurrence.
Now, after the ratification of the rate of interest by the federal government, the EPFO would begin crediting the mounted charge of curiosity for the fiscal into the EPF accounts.
The 8.1 per cent EPF charge of curiosity is the bottom since 1977-78, when it stood at 8 per cent.
The 8.5 per cent rate of interest on EPF deposits for 2020-21 was determined by the Central Board of Trustees (CBT) in March 2021.
It was ratified by the finance ministry in October 2021. Thereafter, the EPFO issued instructions to discipline places of work to credit score the curiosity revenue at 8.5 per cent for 2020-21 into the subscribers’ account.
In March 2020, the EPFO had lowered the rate of interest on provident fund deposits to a seven-year low of 8.5 per cent for 2019-20, from 8.65 per cent in 2018-19.
The EPF rate of interest offered for 2019-20 was the bottom since 2012-13, when it was introduced down to eight.5 per cent.
EPFO had offered 8.65 per cent rate of interest to its subscribers in 2016-17 and eight.55 per cent in 2017-18.
The speed of curiosity was barely greater at 8.8 per cent in 2015-16. It had given 8.75 per cent charge of curiosity in 2013-14 in addition to 2014-15, greater than the 8.5 per cent for 2012-13. The speed of curiosity was 8.25 per cent in 2011-12.