INSUBCONTINENT EXCLUSIVE:
The decision will impact around five crore PF subscribers.New Delhi:
Employees' Provident Fund Organisation (EPFO)
has reduced interest rates to the lowest in more than 40 years for the current financial year
On Saturday, the retirement fund body had decided to reduce the interest on provident fund (PF) deposits for 2021-22 to 8.1 per cent from
8.5 per cent in the previous fiscal, 2020-21
The reduction marks the lowest interest rate since 1977-78 when the figure stood at 8 per cent
EPFO is the top decision making body Central Board of Trustees (CBT).The Finance Ministry will now vet the interest rate recommended by the
CBT and issue notification.The decision will impact around five crore PF subscribers
The rate was kept unchanged in 2020-21.In 2019-20, EPFO had cut the rate on PF 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.The retirement fund body had
provided an 8.65 per cent interest rate to its subscribers in 2016-17 and 8.55 per cent in 2017-18.The rate was slightly higher at 8.8 per
cent in 2015-16.EPFO had given an 8.75 per cent rate of interest in 2013-14 as well as in 2014-15, higher than 8.5 per cent for 2012-13.The
rate of interest was 8.25 per cent in 2011-12."EPFO despite following a conservative approach towards investment, has consistently generated
high returns over the last many years which has enabled it to distribute higher interest to its subscribers, through various economic cycles
with minimal credit risk, the Ministry of Labour and Employment stated.
