Utility News: Central government gave a big blow to the subscribers of EPFO, now only this interest will be available on deposits
About five crore subscribers of the Employees' Provident Fund Organization (EPFO) have suffered a setback. Now they will be able to get only 8.1 percent interest on provident fund deposits for the years 2021-22.
The government has approved giving 8.1 percent interest on provident fund deposits to the shareholders for the year 2021-22. This is the lowest interest rate available on EPF in four decades.
In March this year itself, the Central Board of Trustees (CBT) of the Employees' Provident Fund Organization had decided to reduce the interest rate payable for 2021-22 to 8.1 percent from 8.5 percent for 2020-21.
According to reports, the Ministry of Labor and Employment has been informed about the approval of 8.1 percent interest to EPFO subscribers for 2021-22. It is worth noting that 8.1 percent interest on EPF deposits is the lowest since 1977-78 when the interest rate on EPF deposits was 8 percent at that time.