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: -Since the idea behind the EPF scheme is to provide financial aid to employees, EPFO allows all employees to withdraw a part of their EPF after a year of working, in case of emergency. On top of this, the funds accumulated in the employee’s EPF are accumulated with an interest of 8.5%.

Detailed explanation-3: -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.

Detailed explanation-4: -“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%).

Detailed explanation-5: -Earlier in June, the government approved an 8.1% interest for 2021-22 for over five crores EPF subscribers. Usually, the EPFO starts crediting the interest into the PF accounts after the government ratifies the interest rate.