Provident Fund Receive 8.1% Interest Rate For 2021-22

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Provident Fund Alert: Subscribers to Receive 8.1% Interest Rate For 2021-22 | Here’s How to Check PF Balance

Provident Fund Alert: The move from the Centre will impact about five crore subscribers of the Employees’ Provident Fund Organisation (EPFO).

Here comes a big update for the Provident Fund subscribers. The Centre has approved a four-decade-low interest rate of 8.1 per cent on employee provident fund deposits for 2021-22, according to news agency PTI. The move from the Centre will impact about five crore subscribers of the Employees’ Provident Fund Organisation (EPFO).

The EPFO had in March decided to pay an 8.1 per cent rate of interest on the provident fund deposits for the financial year 2021-22, against 8.5 per cent earlier. It must be noted that the 8.1 per cent EPF interest rate is the lowest since 1977-78, when it stood at 8 per cent

In this regard, the Ministry of Labour and Employment has conveyed the approval of the central government to credit 8.1 per cent rate of interest for 2021-22 to each member of the EPF scheme, PTI reported.

• 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 per cent EPF rate of interest is the lowest since 1977-78, when it stood at 8 per cent. The 8.5 per cent interest rate on EPF deposits for 2020-21 was decided by the Central Board of Trustees (CBT) in March 2021.
• It was ratified by the finance ministry in October 2021. Thereafter, the EPFO issued directions to field offices to credit the interest income at 8.5 per cent for 2020-21 into the subscribers’ account.

In the Past:

• In March 2020, the EPFO had lowered the interest rate on provident fund deposits to a seven-year low of 8.5 per cent for 2019-20, from 8.65 per cent in 2018-19.
• The EPF interest rate provided for 2019-20 was the lowest since 2012-13, when it was brought down to 8.5 per cent.
• EPFO had provided 8.65 per cent interest rate to its subscribers in 2016-17 and 8.55 per cent in 2017-18.

What is EPF?

• EPF is a savings scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and is being managed under the aegis of Employees’ Provident Fund Organisation (EPFO).
  
• EPF covers every establishment in which 20 or more persons are employed. In every company, the employee has to pay a certain contribution towards the provident fund and the same amount is paid by the employer on a monthly basis.
• And after the retirement or during the service (under some circumstances), the employee gets the lump sum amount including the interest on PF contributed which gets accrued.
• The government data showed that around 4.9 crore new subscribers have joined Employees’ Provident Fund (EPF) scheme during September 2017 to November 2021 period.

How to check PF balance on portal:

• On EPFO website, click on ‘Member Passbook’ under the section for employees.
• After logging with UAN and password, you can view the PF passbook.
• The break-up of employee and employer contribution will be shown along with opening and closing balance.
• The PF interest earned and any PF transfer amount will also be shown on the website.
• You have to click on the specific member ID to know the balance of that PF account.

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