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: -The current interest rate In March this year, the EPFO decided to lower the interest on provident fund deposits for 2021-22 to 8.1 percent from 8.5 percent provided in 2020-21. This was the lowest rate since 1977-78, when it stood at 8 percent.

Detailed explanation-3: -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-4: -2021-22 is non-taxable, i.e. below Rs. 2.5 lakh or Rs. 5 lakh threshold, as the case may be. Interest accrued on the closing balance as of 31 March 2021, as well as interest accrued on the non-taxable contribution for each financial year starting from F.Y.

Detailed explanation-5: -Current EPF Interest Rate 2022-23 The current EPF interest rate stands at 8.10%. This interest rate is valid for all the transactions made from 1st April 2022 to 31st March 2023.