EPFO’s central decision-making body, the Central Board of Trustees, will take a call on the interest rate on employee provident fund deposits for 2021-22 at its meeting next month.
“The Employees Provident Fund Organization (EPFO) CBT meeting will be held in Guwahati in March where the interest rate proposal for 2021-22 will be listed as it is the end of the fiscal year,” Union Labor Minister Bhupender Yadav said. ITP when asked about the EPF interest rate for 2021-22.
Asked if EPFO would keep the 8.5 percent interest rate for 2021-22 as decided for 2020-21, Yadav, who also heads the CBT, said the decision would be made on the basis of the revenue projection for the fiscal year.
The 8.5 percent interest rate on EPF deposits for 2020-21 was decided by the Central Board of Trustees (CBT) in March 2021.
It was ratified by the Ministry of Finance in October 2021 and EPFO subsequently issued instructions to field offices to credit interest income at 8.5 per cent for 2020-21 to the subscribers’ account.
Once CBT decides on an interest rate on EPF deposits for a fiscal year, it is sent to the Ministry of Finance for approval. EPFO provides the interest rate only after it is ratified by the government through the Ministry of Finance.
As of March 2020, EPFO had lowered the interest rate on provident fund deposits to a seven-year low of 8.5% for 2019-20, from the forecast 8.65% for 2018-19.
The EPF interest rate provided for 2019-20 was the lowest since 2012-13, when it was lowered to 8.5 percent.
EPFO had provided an interest rate of 8.65% to its subscribers in 2016-17 and 8.55% in 2017-18. The interest rate was slightly higher at 8.8 percent in 2015-16.
It had given an interest rate of 8.75 percent in 2013-14 and 2014-15, up from 8.5 percent for 2012-13. The interest rate was 8.25 percent on the provident fund in 2011-12.