Govt approves 8.1% interest rate on EPF deposits for FY22, lowest in over 40 years

The government has approved an 8.1 percent rate of interest on employees' provident fund (EPF) deposits for 2021-22 -- an over four-decade low

for about five crore subscribers of retirement fund body EPFO. Earlier in March this year

(EPFO) had decided to lower the interest on provident fund deposits for 2021-22 to 8.1 percent from 8.5 percent provided in 2020-21.

According to an EPFO office order issued on Friday and reviewed by PTI, 

the Ministry of Labour and Employment has conveyed the approval of the central government to credit an 8.1 percent rate of interest for 2021-22 

to each member of the EPF scheme. The labour ministry had sent the proposal to the Ministry of Finance for its concurrence.

Now, after the ratification of the interest rate by the government, the EPFO would start crediting

the fixed rate of interest for the fiscal into the EPF accounts. The 8.1 percent EPF rate of interest is the lowest since 1977-78 when it stood at 8 percent.