EPF Interest Rate: Provident fund money is very important for all employees. It is necessary for all the employees working in the government or private sector to contribute to the PF account.
These accounts are managed by the Employees’ Provident Fund Organization (EPFO). You can withdraw money from your PF account in difficult times. Although this government scheme has been made for the betterment of the employees, but in the last few years, PF members are suffering. Let’s know how.
Interest rate on reduced PF (EPF Interest Rate)
Actually, interest is given by the government on the amount deposited on the PF account. The employees are waiting for this interest amount. But this interest rate has come down in the last few years. Some time ago the Employees’ Provident Fund Organization reduced the interest rate for the financial year 2021-22 from 8.5 percent to 8.10 percent. This rate is the lowest in the last 40 years. In such a situation, now PF members are getting less benefit than before.
In the last 10 years
, the interest has reduced so much, if we talk about the last one decade, then the interest has reduced a lot. In the year 2010-11, the government used to put the amount of interest at the rate of 9.50 percent in the account of PF members, but in the very next year, i.e. 2011-12, the interest rate was reduced to 8.25 percent. However, it increased after that. In the year 2012-13, the employees used to get 8.50 per cent interest. It was 8.75 per cent in 2013-14 and 2014-15 and 8.80 per cent in 2015-16. After this, the amount of interest reduced for two consecutive years and became 8.55 percent.
At one time, 12 percent interest was
available in 1952, where the interest rate on PF was only 3 percent, it reached above 6 percent in 1972 and after that it continued to increase every year. It went above 10 per cent for the first time in 1985-86. But the year 1989 to 1999 was the best time for PF members because during this time 12 percent interest was available on PF. But then it started declining.