Employee Provident Fund (EPF) interest rate for 2021-22 has been revised on Saturday, 12 March 2022. It has been slashed from the existing rate of 8.5 percent to 8.1 percent. It is the lowest rate since 1977-78, at that time it was 8 percent. It will disappoint all its salaried class employees.
As of now, approximately five crore employees are the part of Employment Provident Fund Organisation (EPFO). This will be applicable to all of them.
Every year this decision is taken by The Central Board of Trustees (CBT), EPFO. This year the decision was taken during the meeting of the CBT, EPFO which was held in Guwahati.
Labour minister Mr. Bhupender Yadav while elaborating on the board’s decision for the interest rate of 8.1 percent said that the interest rate was finalized after keeping in mind the prevailing international conditions and the market situation.
We made the recommendation of 8.1 percent interest rate after reviewing the prevailing market situation as well as the international scenario. Also, we cannot take high-risk instruments as we have to keep social security and market stability in mind, and therefore the decision was taken.
The board recommendation for the interest rate of 8.1 percent for 2021-22 will be sent to the finance ministry soon for concurrence.
Once the finance ministry ratifies the board’s decision, EPFO will direct its field officers to credit the interest calculated at the new rate of 8.1 percent for 2021-22 in the members’ accounts.
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