EPFO interest rate reflects reality; is still better than other schemes: FM

The central board has proposed to slash the PF rate to 8.1 per cent for FY22 from 8.5 per cent in FY21 and FY20, the lowest in four decades

The reduction in interest rate offered by Employees’ Provident Fund Organisation (EPFO) to 8.1 per cent reflects ‘today’s realities’ and is still higher than interest on small savings schemes and bank fixed deposit rates, finance minister Nirmala Sitharaman said on Monday.

“EPFO has a central board which is the one which takes the call on what rate has to be given for them, and they have not changed it for quite some time...they have changed it now ... to 8.1 per cent," she said, adding that the proposal is yet to come to the finance ministry for approval. Sitharaman was