New Delhi: The Employee’s provident fund interest rates for 2021-22 have been slashed from 8.5% to 8.1%. The slash in the rate as of now is considered to be the lowest since 1977-88, when it was 8 percent, labour ministry sources said on Saturday.
The decision was made during a meeting of the EPFO’s central board of trustees that was held in Guwahati.
There are about five crore subscribers of employees provident fund organsation (EPFO).
The recommendation of the board will be soon sent to finance ministry. The interest rate was 8.5% in 2021.
Only after the finance ministry rectifies the board’s decision, EPFO will direct its field offices to credit the interest income calculated at the new rate of 8.1 per cent for 2021-22 in the subscribers’ accounts.
In March 2020, EPFO had lowered the interest rate on provident fund deposits to a seven-year low of 8.5 per cent for 2019-20, from 8.65 per cent provided for 2018-19.
The EPF interest rate provided for 2019-20 was the lowest since 2012-13, when it was brought down to 8.5 per cent.
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