EPFO’s decision-making body Central Board of Trustee will take a decision on interest rate on employees’ provident fund deposits for 2021-22 in its meeting scheduled in March, reported Press Trust of India.
“The Employees' Provident Fund Organisation (EPFO) CBT meeting will be held in Guwahati in March where proposal for interest rate for 2021-22 would be listed as it is end of the fiscal year,” Union Labour Minister Bhupender Yadav told the agency, reported PTI.
When asked whether EPFO would maintain the 8.5 per cent interest rate for this year just as last year, Yadav said a final call would be taken on the basis of income projection for this year, PTI reported.
The interest rate of 8.5 per cent on EPF deposits was decided by the Central Board of Trustees (CBT) in March 2021 for 2020-21.
It was ratified by the finance ministry in October 2021 and later, EPFO gave directions to field offices to transfer the interest income at 8.5 per cent into the subscribers’ accounts.
Once CBT determines an interest rate on EPF deposits for a fiscal year, it is sent to Ministry of Finance for final approval.
EPFO provides the rate of interest once it gets a go-ahead by the finance ministry.
In March 2020, EPFO lowered interest rate on to a seven-year low of 8.5 per cent for 2019-20, from 8.65 per cent the year before.
It was the lowest since 2012-13.
EPFO provided 8.65 per cent interest rate in 2016-17 and 8.55 per cent in 2017-18. The rate was 8.8 per cent in 2015-16. It gave 8.75 per cent in 2013-14 and in 2014-15, higher than 8.5 per cent for 2012-13.
The rate was 8.25 per cent on provident fund in 2011-12.