EPF interest rate down to 8.1%, lowest since 1977-78
By Anushtup Haldar
The interest rate of employees’ provident fund (EPF), the retirement fund body of Employees’ Provident Fund Organisation (EPFO), for the financial year 2021-22 has been set at a very low 8.1 per cent by the government, as per a Union Labour Ministry proposal which was sent to the Finance Minister for approval on Friday, June 3.
The decision has drawn severe criticism from various quarters. This is the lowest rate of EPF interest since the 8 per cent, set for 1977-78.
The interest rate for 2020-21 stood at 8.5 per cent, the same as for 2019-20. That was another negative record of sorts too, being the lowest in seven years (that is, since 2012-13, when it was also 8.5 per cent). The rate for 2018-19 was 8.65 per cent.
Looking historically, the interest rate for EPF was a high 12 per cent, the highest ever since its inception in 1952, for 11 continuous financial years from 1989-90 to 1999-2000. For 2000-01, it was a mix of 12 per cent and 11 per cent.
