New Delhi: Ending all speculation in the market, the Indian government has reduced the interest rate of EPF from 8.5% to 8.1% for the year 2021-22. After the reduction, the new rate has reached to its lowest in 40 years.
In the year 1977-78, the rate was at 8 per cent. Notably, the latest decision came on the recommendation of the Employee Provided Fund Orgnaisation (EPFO), proposing the reduction in the interest rate on retirement saving for its 6.4 crore subscribers.
The government had last lowered the rate of interest in March 2020. It was reduced to a seven-year low of 8.5% from 8.65% in 2018-19.
If we look at the rate of the past 7 years, the rate of interest rate has declined by 0.70%.
The interest was at 8.75% in the year 2015, followed by 8.80% in 2016, 8.65% in 2017, 8.55% in 2018, 8.65% in 2019, 8.50% in 2020, 8.50% in 2021, 8.10% in 2022.
