EPFO slashes interest rate to 8.1% on EPF deposits for 2021-22: Sources

FPJ BureauUpdated: Saturday, March 12, 2022, 11:31 PM IST
article-image
EPFO fixes 8.1%as the rate of interest on EPF deposits for 2021-22/ Representational image | File photo

The employees' provident fund interest rate has been slashed to 8.1 per cent for 2021-22; this is the lowest rate since 1977-78, when it was 8 per cent. The interest rate was 8.5 per cent in 2020-21. This will impact about five crore subscribers. The decision to cut the interest rate will be sent to the Ministry of Finance for its concurrence. Any such EPFO decision must be ratified by the government through the finance ministry. Labour Minister Bhupender Yadav, while elaborating on the board's decision, said that the interest rate was finalised after keeping in mind the prevailing international conditions and the market situation.

Taking a swipe at the government, the Congress on Saturday said the reduction in EPFO interest rate was a "return gift" of the BJP to people following its victory in the just-concluded Assembly polls. "The income of 84 per cent people of the country has decreased. Is it right to attack the savings of crores of employees on the basis of an electoral victory?" asked Congress general secretary and chief spokesperson Randeep Surjewala.

Provident fund savings are mandatory; at least 12 per cent of an employee's basic salary is compulsorily deducted and is saved in provident fund; to this, an employer co-contributes an equal amount.

(To receive our E-paper on whatsapp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

I may not be qualified enough: Pankaja Munde over missing out on cabinet berth in Maharashtra

I may not be qualified enough: Pankaja Munde over missing out on cabinet berth in Maharashtra

Mumbai Metro 3: Aarey depot speeding to April 2023 deadline

Mumbai Metro 3: Aarey depot speeding to April 2023 deadline

Malvani Building collapse: HC grants bail to owner who lost his nine family members

Malvani Building collapse: HC grants bail to owner who lost his nine family members

Mumbai: With no bidders for pothole tenders, BMC relaxes conditions to attract contractors

Mumbai: With no bidders for pothole tenders, BMC relaxes conditions to attract contractors

Mumbai: Private school chairman, principal get 15-days jail for not reinstating teacher

Mumbai: Private school chairman, principal get 15-days jail for not reinstating teacher