New Delhi: The Central government on Friday approved the reduction of interest rate on employees’ provident fund (EPF) deposits for 2021-22 from 8.5 per cent to 8.1 per cent.
The proposal to cut interest by 0.4% was made by EPFO in March this year. Now that the government has put the seal on it, it will affect around 5 crore subscribers of Employees’ Provident Fund Organization (EPFO).
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This will be the lowest rate of interest on PF deposits in more than four decades.
The lowest rate of interest before this was 8% — in 1977-78.
EPFO had brought down interest rate on provident fund deposits to a seven-year low of 8.5% per cent for 2019-20 in March 2020, from 8.65% in 2018-19.
