Provident Fund Interest Rate Notification for 2021-22
EPF Interest Rate for the financial year 2021-22 has been reduced by almost 4.70% as compared to financial year 2020-21.
EPFO published its official notification on 3rd June, 2022 via notification number INV-11/2021-INV/4670
The interest rate for financial year 2021-22 has been fixed @ 8.10% by Employees Provident Fund Organization which disappointed millions of subscriber.
During the year 2020-21 EPFO has provided 8.50% interest per annum on the PF deposit balance of the provident fund subscriber.
You may download the official notification by click here.
Historic Records of EPF Interest Rate
EPF interest rate may fluctuate depending on the financial and the economic situation in the country. You may find the interest rate on EPF over the last 7 years in the below table:
Sl No
Financial Year
Interest Rate per Annum
1
2015-16
8.80%
2
2016-17
8.65%
3
2017-18
8.55%
4
2018-19
8.65%
5
2019-20
8.50%
6
2020-21
8.50%
7
2021-2022
8.10%
8
2022-2023
8.15%
What is Employees Provident Fund?
Employees Provident Fund is a type of savings or fund by the employees of private organization whose monthly salary is not more than a specific limit prescribed by the Employees Provident Fund organization as the fund is managed by EPFO which is the largest social security organization of the country.
Every month a little portion of the salary will be contributed towards the provided fund directly by the employer of the PF eligible employee. Along with that the employer also contributed same amount of money toward the provident fund against every eligible employee as a statutory requirement as per the EPF and MP Act, 1952.
Benefits of Employees Provident Fund
Provident Fund subscriber or PF eligible employees entitled to receive multiple benefit for contributing toward the provident fund. Every subscriber will get a UAN (Universal Account Number) to access their investment online in easy steps. This is the number used by EPFO to track records of every subscriber starting from the joining to exit of the subscriber from provident fund.
The amount of interest received on the provident fund deposits is comparatively high as compared to fixed deposit of many banks.
Provident Fund subscriber will get multiple facilities like partial withdrawal PF balance, PF transfer in case of job change, final settlement of Provident fund in case of leaving the job for forever.
But this is not the end of the list. If a PF subscriber died during the service period, the legal heir or nominee will lumpsum provident fund amount available in the PF account & get pension on monthly basis.
Along with that, the family or nominee of the deceased also used to receive EDLI benefit from EPFO up to a limit of 7 Lacs subject to eligibility. You may click here for detail benefit under EDLI scheme.
For more information and latest update you may visit the EPFO official site on regular basis. If you have any query regarding this article please do comment below.
