New Delhi, March 12: In what may be seen as a major set back for millions of middle-class Indians, especially amid the rising inflation, state-run Employees Provident Fund Organisation (EPFO) on Saturday slashed the interest rates to 8.1 per cent for the fiscal year 2021-22.
The EPFO had kept the interest rate steady at 8.5 per cent for 2020-21. The downward revision of the rates for 2021-22 is, however, the lowest in years. Provident fund has been one of the most lucrative and safe forms of investment, especially for millions of middle-class people as well as the pensioners given the higher rate of interest, as compared to banks’ savings or fixed deposit rates.
However, the downward revision of the rates, will not go down well with these EPFO subscribers. According to the data provided by the Ministry of Labour, EPFO added 14.60 lakhs net subscribers during December 2021. Of the total 14.60 lakh net subscribers added, 9.11 lakhs were new members who had enrolled under EPFO & MP Act, 1952, for the first time. EPFO provides provident fund, pension benefits to the members on their retirement and family pension and insurance benefits to their families in case of untimely death of the member.
