Govt notifies 8.1% EPF rate for 2021-22 – Times of India
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NEW DELHI: The finance ministry on Friday approved the Employees’ Provident Fund Organisation’s proposal in March to rationalise interest rates from 8.5% to 8.1% 2021-22, in a move that paves way for payouts to over 6.4 crore subscribers.
Amid falling interest rates, the retirement savings agency had to bring down rates to the lowest since 1977-78 but the returns are higher than several comparable schemes, especially for those who are under the tax threshold. The cut in interest rates is expected to leave the EPFO with a surplus of Rs 450 crore during the financial year. Compared to earnings of 8.5% on the corpus last year, this year, EPFO has estimated an income of Rs 76,768 crore.
Amid falling interest rates, the retirement savings agency had to bring down rates to the lowest since 1977-78 but the returns are higher than several comparable schemes, especially for those who are under the tax threshold. The cut in interest rates is expected to leave the EPFO with a surplus of Rs 450 crore during the financial year. Compared to earnings of 8.5% on the corpus last year, this year, EPFO has estimated an income of Rs 76,768 crore.
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