The Central government on Friday approved 8.1 per cent rate of interest on Employees’ Provident Fund (EPF) deposits for 2021-22, according to an Employees’ Provident Fund Organisation (EPFO) office order, reported news agency PTI.

The EPFO had in March proposed to cut the interest rate on EPF deposits from 8.5 to 8.1 per cent for 2021-22. This is the lowest interest rate on deposits in the past four decades and is set to impact 6 crore subscribers. The decision was taken at the meeting of EPFO’s Central Board of Trustees, chaired by Labour Minister Bhupender Yadav in Guwahati.

According to an EPFO office order issued on Friday and reviewed by the PTI, the Ministry of Labour and Employment has conveyed approval of the Central government to credit 8.1 per cent rate of interest for 2021-22 to each member of the EPF scheme.

The Labour Ministry had sent the proposal to the Ministry of Finance for its concurrence.

Now, after the ratification of the interest rate by the government, the EPFO would start crediting the fixed rate of interest for the financial year into the EPF accounts.

The interest rate on EPFO was slashed several times in the past four years. In 2019-20, the interest rate on EPF deposit was 8.5 per cent, while in 2018-19 it was 8.65 per cent and 8.55 per cent in 2017-18. The last time when the EPF rate was even closer to 8.1 per cent was in 2011-12 when the retirement fund body had paid 8.25-8.50 per cent rate to its subscribers.

Meanwhile, EPFO added 15.32 lakh subscribers in March 2022, over 19 per cent more than 12.85 lakh enrolled in February this year.

The provisional EPFO payroll data released on Friday highlighted that it had added 15.32 lakh net subscribers in March 2022, a Labour Ministry statement said. According to the statement, a month-on-month comparison of payroll data shows an increase of 2.47 lakh net subscribers in March 2022 compared to the net additions during February 2022.