Employees Provident Fund Rate Cut To 4-Decade Low

[{"selector":"#anim-75a89ffc-2b6c-4302-9a10-bd4d6b51e5c3","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-20a41d0d-86e1-4119-8920-952997ef4e69","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] EPFO decided to lower the interest rates on PF deposits to an over four-decade low of 8.1% for its about 5 crore subscribers, from 8.5% provided in 2020-21

[{"selector":"#anim-a95f0185-8811-4126-a350-fdc93a7e9cdb","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-98bce4d9-cfaf-4be3-b2f0-f24a87a95a0d","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Retirement fund body Employees' Provident Fund Organisation (EPFO) on Saturday decided to lower the interest on provident fund deposits for 2021-22

[{"selector":"#anim-f424f73a-ac6b-4fa2-920a-9e2eb32b2328","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-1d43672a-49c3-4b28-943f-210bf6481468","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The EPFO's apex decision-making body Central Board of Trustees has decided to provide an 8.1% rate of interest on the Employees Provident Fund (EPF) for 2021-22

[{"selector":"#anim-ba08a247-99f8-405e-8332-e27396b6fa82","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-0990e065-f34b-4429-9eec-207f095d801c","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The Employees' Provident Fund Organisation's (EPFO's) apex decision making body Central Board of Trustees has decided to provide 8.1 % rate of interest on Employees Provident Fund (EPF) for 2021-22

[{"selector":"#anim-7973bbeb-1965-4abd-8fbd-7062a77e45bd","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-3d1b557d-a11f-44bb-b608-26831805c038","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] It must be noted that the Central Board of Trustees (CBT) in March last year had decided the 8.5 % interest rate on EPF deposits for 2020-21

[{"selector":"#anim-cb2be24a-0916-43e5-b908-fe284cc07a7d","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-d51dc05d-46cd-4110-995b-0f0c23e1012b","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] It was ratified by the finance ministry in October 2021 and thereafter, EPFO issued directions to field offices to credit the interest income at 8.5 % for 2020-21 into the subscribers' account

[{"selector":"#anim-c6f06b34-ee31-4a6a-b3d5-e449eb9f6c37","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-61efd0af-5610-43a7-9565-fef1eb236ce7","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Now, after the CBT decision, the interest rate on EPF deposits for 2021-22 will be sent to the Ministry of Finance for concurrence

[{"selector":"#anim-e0024f09-e4a2-47e3-b809-aa40db2802fc","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-ae6e93d7-3564-471a-9177-1509c1d9e49c","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] EPFO provides the rate of interest only after it is ratified by the government through the finance ministry

[{"selector":"#anim-b880b5c1-e57a-4b61-842e-0df0f94f18d6","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-24125e6c-d41f-49b6-b489-7ede06445e11","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] In March 2020, EPFO had lowered the interest rate on provident fund deposits to a seven-year low of 8.5 % for 2019-20, from 8.65 % provided for 2018-19

[{"selector":"#anim-18514a49-d9c9-404b-ba69-8dab1019c813","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-bd892552-3c5c-4dd7-8f01-1b5122164e7e","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The EPF interest rate provided for 2019-20 was the lowest since 2012-13, when it was brought down to 8.5 %.

[{"selector":"#anim-d19e6842-4de8-4bba-9406-505d3b6e5365","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-73efeb90-a302-44ae-9960-6f9024fef037","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] EPFO had provided 8.65 % interest rate to its subscribers in 2016-17 and 8.55 % in 2017-18. The rate of interest was slightly higher at 8.8 % in 2015-16

[{"selector":"#anim-bf67bdf7-72b0-4748-9068-3ed1319d77af","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-12329ac4-8e66-40b9-9dd8-f74cafb53164","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] This is the lowest since 1977-78 when the EPF interest rate stood at 8%, the news agency added.The decision was taken during the meeting of the EPFO's central board of trustees