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.
