Home Business EPFO Proposes Slashing Interest Rate From 8.5% To 8.1%, Lowest Since 1978: Report

EPFO Proposes Slashing Interest Rate From 8.5% To 8.1%, Lowest Since 1978: Report

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New Delhi: In what is available in as a big jolt to the widespread man, the federal government is about to slashed the rate of interest on the workers’ provident fund.

The staff’ provident fund rate of interest for 2021-22 shall be slashed from the present 8.5 per cent to eight.1 per cent.

The EPFO fixes 8.1 laptop as price of curiosity on EPF deposits for 2021-22, PTI reported sources as saying.

The choice on this regard was taken throughout a gathering of the EPFO’s central board of trustees in Assam capital Guwahati.

This determination will have an effect on round six crore subscribers of the EPFO. That is the bottom since 1977-78, when the EPF rate of interest stood at 8 per cent.

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In response to sources, the advice to cut back these rates of interest got here from the Union Finance Ministry, following which, it was permitted by the EPFO.

“The Workers’ Provident Fund Organisation’s (EPFO’s) apex determination making physique Central Board of Trustees has determined to offer 8.1 per cent price of curiosity on Workers Provident Fund (EPF) for 2021-22 in its assembly held on Saturday,” PTI reported a supply as saying.

The EPFO’s advice will quickly be despatched to the Finance Ministry. 

The EPFO will direct its discipline workplaces to credit score the curiosity revenue calculated on the new price of 8.1 per cent for 2021-22 within the subscribers’ accounts after his determination is ratified by the Finance Ministry.

The EPFO had earlier in March 2020 lowered the rate of interest on provident fund deposits to a seven-year low of 8.5 per cent for 2019-20 from 8.65 per cent for 2018-19.

The EPF rate of interest supplied for 2019-20 was the bottom since 2012-13 when it was introduced down to eight.5 per cent.

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