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EPFO cuts interest rate to 8.1% for 2021-22, lowest in 43 years

Last fiscal, this interest rate was 8.5%. The last time EPFO paid lower than Fy22 rate was in 1977-78 when the interest rate was 8%. This year's lowering of the rate is likely to disappoint millions of its salaried-class subscribers.

March 13, 2022 / 08:12 AM IST
EPFO | Representative Image

EPFO | Representative Image

The Employees’ Provident Fund Organisation (EPFO) on Saturday decided to pay 8.1 percent rate of interest on provident fund deposits for the current financial year, down from 8.5 percent in Fy21.

This was the lowest rate in 43 years, and would disappoint over 60 million of its salaried-class subscribers. The last time EPFO paid lower than this rate was in 1977-78 when the interest rate was 8%.

“The central board has declared 8.1 percent interest rate keeping in view and taking into account its income of Rs. 76,768 crore,” Michael Dias, a central board member said.

The EPFO paid 8.5 percent interest rate to millions of its subscribers in 2020-21. Its EPF rate was 8.5 percent in 2019-20, 8.65 percent in 2018-19 and 8.55 percent in 2017-18. It paid 8.65  8.5 percent in 2016-17 and 8.8 8.5 percent in 2015-16.