Govt. approves Reduced PF Interest Rate at 8.10% for FY 2021-22

The Ministry of Labour and Employment, Government of India, has approved CBT (EPFO proposal )'s for PF Interest Rate (FY 2021-22) at a lower rate of 8.10 percent as opposed to 8.50 percent (FY 2020-21).

As a result, EPFO has issued instructions for crediting PF Interest (FY 2021-22) in the respective EPF Member's Account in due course for their fund accumulations.

Declaration of Interest Rates for Employees' Provident Fund Members Accounts for 2021-22

1. The Ministry of Labour and Employment, Government of India, has conveyed the Central Government's approval, pursuant to paragraph 60(1) of the Employees' Provident Fund Scheme, 1952, to credit interest at 8.10 percent to the accounts of each member of the EPF Scheme for the fiscal year 2021-22, in accordance with the provisions of paragraph 60 of the EPF Scheme, 1952.

2. You are therefore requested to issue the necessary instructions to all parties involved in order to credit the said interest to the members' accounts.

Furthermore, the CBT made the following key decisions during the said meeting:

I Approval of Revised Estimates for the fiscal year 2020-21 and Budget Estimates for the fiscal year 2022-23 for EPFO-managed schemes.

ii) Ratification of the extension of the tenure of the External Concurrent Auditor and Custodian, as well as the tenure of SBI MF and UTI MF as ETF manufacturers, until 31 March 2022, or until appointments are made, whichever comes first.

iii) Approval of the decision to redeem Air India Non-Convertible Debentures (NCDs) in EPFO's portfolio. This redemption assisted EPFO in realising Rs. 8944.32 Cr. against a face value of Rs 7772.50 Cr.

iv)  Approval of the Exit Policy and the associated Standard Operating Procedure (SOP) for exiting downgraded securities.

v) Approval of increased delegation of administrative and financial powers of the CPFC for expenditure under the Budget head capital expenditure/Hiring of office space.

vi) Approval of HR/Establishment Adhoc Committee recommendations paving the way for promotion of dying cadres, timely filling of vacancies in group B and C cadres, transfer policy for commissioner's cadre, and EPFO training policy and capacity building plan. Furthermore, funds for sports and cultural activities will be increased. Sports quota vacancies of 5% will be filled with suitable candidates, and objective criteria will be established to fill these vacancies.

vii) Approval of Adhoc IT and communications recommendations to augment infrastructure, applications, capacity, carry out business process engineering, and establish governance apparatus.

viii) Approval of the Adhoc Committee on Pension Reforms' recommendations to form a task force of pension and social security experts to suggest possible measures to enhance the benefits of the EPS-95. This task force will include representatives from the PFRDA, LIC, VVGNLI, two independent actuaries, and the chief investment officer.

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