The EPFO meeting has decided to reduce interest rates. The interest rate, which was 8.5 per cent for the last two years, has now been reduced to 8.1 per cent. The decision was taken at a two-day meeting starting March 11. PTI reported. To secure the future of the employees, a portion of their salary is deducted and credited to the PF account. The same amount has to be credited to this account by employees company. EPFO manages this fund and pays interest on this amount every year. In the financial year 1977-78, EPFO offered people 8% interest on PF deposits. Since then it has consistently been getting more than that.
Even during the Corona period, the government kept interest rates unchanged at 8.5 per cent. According to PTI, EPFO had offered 8.5% interest on PF deposits in the financial years 2019-20 and 2020-21. Earlier it was 8.65% in 2018-19, 8.55% in 2017-18, 8.65% in 2016-17 and 8.8% in 2015-16. The board of trustees of EPFO has decided to reduce the interest of PF in its meeting held on Saturday. This decision of the government will affect 6 crore people. Recommendations to cut interest rates came from the finance ministry and were approved by the EPFO, after which interest rates have come down from 8.5 per cent to 8.1 per cent.