December 2, 2022
  • December 2, 2022

EPFO board to decide next month on deposit interest rate for 2021-22

By on February 13, 2022 0

EPFO board to take call to set interest rate for 2021-22 on provident fund deposits

New Delhi:

The Board of the Employees Provident Fund Organization (EPFO) will decide on the interest rate on Employees Provident Fund deposits for 2021-22 at its meeting scheduled for next month.

“The EPFO ​​board meeting will be held in Guwahati in March, where the interest rate proposal for 2021-22 would be listed as it is the end of the fiscal year,” the Minister of Finance said. Work Bhupender Yadav.

Asked whether the EPFO ​​would maintain the 8.5% interest rate for 2021-22 as decided for 2020-21, Mr Yadav, who also heads the board, said the decision would be made on the basis of revenue projections for the year.

The 8.5% interest rate on ETH deposits for 2020-21 was decided by the board in March 2021.

It was ratified by the Ministry of Finance in October 2021 and subsequently the EPFO ​​gave instructions to field offices to credit interest income at 8.5% for 2020-21 to subscribers’ accounts.

Once the CBT has decided on an EPF deposit interest rate for a budget year, it is sent to the Ministry of Finance for approval.

In March 2020, the EPFO ​​had lowered the interest rate on deposits to the provident fund to a seven-year low of 8.5% for 2019-20, from 8.65% forecast for 2018-19.

The forecast EPF interest rate for 2019-20 was the lowest since 2012-13, when it was reduced to 8.5%.

EPFO had provided an interest rate of 8.65% to its subscribers in 2016-2017 and 8.55% in 2017-2018. The interest rate was slightly above 8.8% in 2015-2016.

It granted an interest rate of 8.75% in 2013-14 and 2014-15, higher than 8.5% for 2012-13. The interest rate was 8.25% on the provident fund in 2011-2012.