The Employees’ Provident Fund Organization EPFO interest has slashed the interest rate on provident fund deposits to seven-year low. For 2019-20 and 2018-19, the EPFO is reducing interest rate from 8.5% to 8.1%. In the previous years, the interest rate was 8.75%. However, the new government has decided to cut the interest rate further, and the amount will now be eight percent. This reduction would hurt the retirement savings of over 60 million subscribers.
The Central Board of Trustees of the Employees’ Provident Fund Organization has decided to cut the interest rate to eight per cent. The new interest rate will apply from 2021 to 2022. The Board will submit its recommendation for ratification to the Ministry of Finance. After the approval by the Finance Ministry, the board will provide the new interest rate. This change is likely to benefit many people who have been saving for their retirement in the fund.
The EPFO has a subscriber base of over six crore and more than six lakh contributing establishments. As a result, the new interest rate will generate an estimated surplus of Rs 450 crore. It would have been a much bigger deficit if the Board had kept the interest rate at 8.5 per cent. The Board’s 230th meeting in Guwahati is expected to take place in June. The new interest rate will be higher than the previous one.
The EPFO interest rate will become eight per cent in 2021-22, which will be the lowest rate since 1977-78, when it was eight per cent. If the current interest rate is retained, the fund will end up with a surplus of Rs 450 crore. Otherwise, the fund will end up with a deficit of over Rs 3,000 crore. This decision is expected to boost the balance in the fund, as it is the most important source of savings.
After a year or two of uncertainty, the EPFO has lowered the interest rate on provident fund deposits. For 2020-21, the EPFO has set an interest rate of 8.5 per cent. The rate is the lowest since 1977-78, but the current rate is higher than the previous two-year-old record. It has been a significant decrease for the EPF. This cut has made it more expensive for the fund to meet its obligations.
The EPFO’s decision to reduce the interest rate on provident fund deposits is welcome news for subscribers. The cut in interest rate is the lowest since 1977-78, when the interest rate was eight per cent. Until then, the rate has fluctuated between eight and nine per cent. The current rate of 8.5 per cent is the highest since the fund was established in 1937. There are about five crore subscribers to the EPFO.
The Central Board of Trustees of the Employees’ Provident Fund Organization (EPFO) has slashed the interest rate for 2021-22 to 8.1 per cent. After the approval of the government, the EPFO sends the rate to subscribers. This cut will affect the amount of money they get from their savings. The lower the rate, the better. This is a big step forward for the fund. The slashed interest rate is a sign of good economic health and a good way to attract more customers.
The EPFO interest rate was already 8.65 per cent for the year 2017-18 and 8.65 per cent for the following two years. This rate was the lowest since 1977-78 when it was eight per cent. This rate was at a higher level in 2016-17 and 2017-18, but it has been stable ever since. The 8.5-percent rate approved by the CBT will be credited to subscribers’ accounts in March 2021-22.
The new interest rate for the Employees’ Provident Fund Organization is the lowest since 1977-78. The lower rate of interest will affect about five crore subscribers. The new interest rate will be credited to the account by 2021-22. In fact, the EPFO will credit the new rate to the accounts of those who contributed in the scheme in April. The EPFO has more than 6.7 million active subscriber accounts and nearly six lakh contributing establishments.
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