CURRENT AFFAIRS

Detailed explanation-1: -Following the finance ministry’s approval, the labour ministry declared an interest rate of 8.1% on Employees’ Provident Fund Organisation (EPFO) deposits. This interest rate of 8.1% for 2021-2022 is the lowest in more than 40 years and is a significant cut from 8.5% credited in 2020-21 and 2019-20.

Detailed explanation-2: -For the FY 2019-20, the interest rate notified is 8.5%. In case the employee’s PF contribution was deducted but not deposited by the employer, it will not be allowed as a deduction for the employer. The government has decided to retain the EPF interest rate of 8.1% for the financial year 2021-22.

Detailed explanation-3: -Dear EPFO, where is my interest? For 2020-21, the EPFO board chaired by the Labour Minister had approved an annual dividend of 8.5% for crores of EPF members, but that was only credited into their accounts by December 2021. In March 2022, the EPF rate for 2021-22 was slashed to 8.1%, the lowest level since 1977-78.

Detailed explanation-4: -The EPF rate for 2021-22 was declared at 8.1%, the lowest level since 1977-78, in March 2022 and was approved by the Finance Ministry in June. In October 2022, Finance Minister Nirmala Sitharaman had attributed the delay in EPF interest credits to a software upgrade and assured that the credits will be visible soon.

Detailed explanation-5: -“The CBT, EPF had recommended 8.10 per cent rate of interest on EPF for the financial year 2021-22, which has been approved by the Government and is higher than other comparable schemes viz. General Provident Fund (7.10%)/Senior Citizens Savings Scheme (7.40%)/Sukanya Samriddhi Account Scheme (7.60%).