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The Central Board of Trustee, Employment Provident Fund (EPF) under the Union Ministry of Labour and Employment has decided to reduce the interest to be paid on the EPF fund to 8.1% for the financial year 2021-22.
During the 2020-21 the interest rate was 8.5%.
The meeting of the Central Board of Trustee was held in Guwahati ,under the chairmanship of the Union Minister for Labour & Employment and Environment, Forest & Climate Change, Bhupendra Yadav.
This is the lowest interest rate since 1977-78 when the EPF interest rate stood at 8%.
Employees provident Fund (EPF)
Employee Provident Fund (EPF) is a retirement benefits scheme framed under the Employees Provident Fund & Miscellaneous Provisions Act, 1952.
The Act is applicable to every factory or industry mentioned in Schedule 1 of the Act, wherein 20 or more persons are employed or to any other establishment which the Central Government specifies by notification in the official Gazette, even when the number of employees is less than 20.
It includes any worker having salary(basic salary and Dearness allowances ) of Rs 15,000 or less per month .
The Employee has to contribute 12% of its salary and a similar contribution is made by the Employer. The Government of India pays interest on the amount every year.
On retirement, the employee receives a lump sum corpus of EPF, including the employee’s contribution, employer’s contribution and the interest amount credited every year.
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