The Employees' Provident Fund Organisation's (EPFO's) top decision-making body the Central Board of Trustees on Saturday approved 8.1 per cent interest rate on provident fund (PF) deposits for the financial year 2021-22. This is the lowest interest rate on PF deposits in more than four decades.
In the last two financial years, 2020-21 and 2019-20, the interest rates on PF deposits stood at 8.5 per cent. The interest rate for 2021-22 will be the lowest since 1977-78 when it stood at 8 per cent.
The decision on the PF deposit rates for the current financial year was taken in the EPFO's Central Board of Trustees meeting held here. The Central Board of Trustees is the apex decision-making body of the EPFO. It is a tripartite body involving the government, workers, and employers' representatives. The Board is headed by the union labour minister.
The union finance ministry will now vet the interest rate recommended by the EPFO's Central Board of Trustees and issue notification.
The interest rates on PF deposits have been reduced sharply in the last six years. In 2015-16 the interest rate on PF deposits stood at 8.8 per cent. It was lowered to 8.65 per cent in 2016-17 and further to 8.55 per cent in 2017-18. In 2018-19 it was increased to 8.65 per cent. However, in 2019-20 it was again lowered to 8.5 per cent. It was kept unchanged in 2020-21.
( With inputs from ANI )
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