EPF Interest Rate: 8.1% interest rate will be available on EPF deposit for 2021-22, EPF rate lowest since 1977

The government has approved 8.1 per cent interest rate on Employees' Provident Fund (EPF) deposits for 2021-22, the lowest level in four decades, for nearly five crore subscribers of the retirement fund body. 

In the financial year 2020-21, EPFO ​​had decided to give 8.50 percent interest. Talking about the figures, the interest rate on PF for the financial year 2022 of the Employees' Provident Fund Organization is the lowest in 40 years (four decades) i.e. 8.1 percent. 15 percent of the money deposited in EPFO ​​is invested in equity and the rest in debt.

In March this year, the Employees' Provident Fund Organization (EPFO) had decided to reduce the interest on provident fund deposits for 2021-22 from 8.5 per cent provided in 2020-21 to 8.1 per cent. The Ministry of Labor and Employment had sought the approval of the Central Government to credit 8.1 per cent interest rate for 2021-22 to each of the members of the EPF scheme. The Labor Ministry had sent the proposal to the Finance Ministry for consent.

The 8.1 percent EPF rate of interest is the lowest since 1977-78, when it was 8 percent at that time. The Central Board of Trustees (CBT) had fixed an interest rate of 8.5 per cent on EPF deposits for 2020-21 in March 2021. This was ratified by the Finance Ministry in October 2021. After this, the EPFO ​​issued instructions to the field offices to deposit the interest income in the account of customers at 8.5 percent for 2020-21.