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Sunday, December 22, 2024 | 01:30 AM ISTEN Hindi

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EPF interest rate cut to 8.1%: Guide to calculating PF and interest earned

The EPFO decides the rate of interest for the EPF scheme on a yearly basis. The rate of interest is dependent on the market conditions and is vetted by the finance ministry. Here's how to calculate it

High-salaried employees may reconsider their contributions to Voluntary Provident Fund (VPF).
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BS Web Team New Delhi
Interest rate on employees' provident fund deposits last week was cut to a four-decade low of 8.1 per cent for the 2021-22 financial year, from 8.5 per cent in the previous year.

The last time the EPF savings were paid an annual return this low was in 1977-78, when the rate was 8%. That marked the highest EPF rate at the time since the EPFO’s inception in 1952. Since then, the EPF rate has only been lower than 8.5% in three years — 1979-80, 1980-81 and 2011-12 — when an 8.25% return was paid on balances.

The EPFO paid 8.5%

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