The interest rates on Employees’ Provident Fund deposits for the financial year 2021-22 will be decided next month. The Central Board of Trustees (CBT), the decision-making body of the Employees’ Provident Fund Organization (EPFO), is going to meet next month to decide on the interest rates for the current financial year.
Union Labor Minister Bhupendra Yadav gave this information to PTI-language.
“The meeting of the Central Board of Trustees of EPFO will be held in Guwahati in March, in which the proposal to fix interest rates for 2021-22 is listed,” Yadav said.
Asked whether the EPFO will retain the interest rate of 8.5 per cent for 2021-22 as well as for 2020-21, Yadav said the decision will be taken on the basis of earnings estimates for the next financial year. Yadav heads the CBT.
In March 2021, the CBT had set an interest rate of 8.5 per cent for EPF deposits for 2020-21.
It was approved by the Finance Minister in October 2021. After that EPFO had directed its field offices to deposit 8.5 percent interest in the accounts of the subscribers for 2020-21.
After the interest rate is decided by the CBT, it is sent for the approval of the Finance Ministry. In March, 2020, the EPFO had reduced the interest rate on provident fund deposits to a seven-year low of 8.5 percent for 2019-20. In 2018-19, an interest of 8.65 percent was given on EPFO.
EPFO had paid 8.65 per cent interest in 2016-17 and 2017-18 also. The interest rate in 2015-16 was 8.8 percent.
At the same time, in 2013-14, 8.75 percent and in 2014-15 also 8.75 percent interest was given. However, the interest rate was 8.5 per cent in 2012-13. It was 8.25 per cent in 2011-12.