The retirement fund body, Employees Provident Fund Organisation (EPFO) has slashed the interest rate on provident fund deposits to 8.10% for 2021-22. This rate is 0.4% lower than the previous year. The interest rate on PF deposits was 8.5% in 2020-21 and 2019-20.
- This is the lowest in more than four decades. EPFO had credited 8.0% as interest rate in 1977-78. Since then, it has been either 8.25% or more.
- The interest rate of 8.1% has been declared based on EPFO’s estimated income for the year at Rs 76,768 crore and this will leave the retirement fund body with a surplus of Rs 450 crore.
- The move is expected to hit the earnings of over sixty million EPFO subscribers.
- 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.
- It had given 8.75 % rate of interest in 2013-14 as well as 2014-15, higher than 8.5 % for 2012-13.
- The rate of interest was 8.25 % in 2011-12.