For the financial year 2021-222, the Workers'Provident Fund (FPF) has agreed to cut the interest rate given to the Workers' Provident Fund (PF) by 8.1 percent. The decision was made at a meeting of the Central Board of Trustees in Guwahati, Assam, led by EPFO Union Labor minister Bhupender Yadav.
The interest rate on workers' provident funds has been decreased from 8.50 percent to 8.1 percent over the last two years. After the Federal Ministry of Finance confirms the Union Ministry of Labor's decision to lower interest rates, this rate will take effect. This is lower than the previous 40-year interest rate. Interest on the provident fund was paid at 8% year 1977-78. The interest rate has been lowered to the same level as before.
Union Labor minister Bhupender Yadav commented on the meeting's choices, saying, "The interest rate has been finalised bearing in mind the international scenario and market environment." After assessing the international circumstances, we have suggested an interest rate of 8.1 percent. It is necessary to consider both social security and market stability. As a result, this choice was made. On futures deposit investments, the federal government has been paying high interest rates. Subscribers were offered a maximum of 8.8% interest in 2015-16. However, the interest rate was gradually reduced after that. In 2016-17, it was set at 8.65 percent, while in 2017-18, it was cut to 8.55 percent.
