EPFO News: Central Government’s shock, EPFO’s interest rate cut, now will get so much

EPFO News: In March, the EPFO ​​decided to cut interest rates on provident fund reserves to 8.1% for 2021-22.
EPFO News: Central Government's shock, EPFO's interest rate cut, now will get so much
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EPFO News: The central government has approved 8.1% interest rate on Employees Provident Fund (EPF) for the year 2021-22. This is the lowest interest rate in four decades. The decision will affect 50 million employees. Earlier in March, the EPFO ​​had decided to raise interest rates from 8.5% to 8.1% for the fiscal year 2021-22.

Information provided by the Ministry of Labor and Employment

According to the order of the EPFO ​​office, the Ministry of Labor and Employment has informed each member of the EPF scheme about the Central Government’s approval to credit the interest rate of 8.1%. The proposal was sent to the Ministry of Finance for approval by the Ministry of Labor. After the approval of the government, EPFO ​​will start accruing interest rate in the account of the employees.

Lowest interest rate since 1977-78

The EPF interest rate of 8.1% is the lowest since 1977-78. The Central Board of Trustees had set an interest rate of 8.5% on EPF deposits for 2020-21 in March 2021. The EPFO ​​then instructed the field offices to deposit 8.5% of the interest income in the account for 2020-21.

What are the principles of EPFO?

We tell you that this amount is made up of the basic salary of the employee and the inflation allowance. 12% of this is deposited in his PF account. Of the 12% share of the company, 3.67% goes to the employee’s PF account. While 8.33% of employees go for pension scheme.

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