EPFO cuts interest rates to 8.1 per cent, lowest in four decades

New Delhi : The Employees’ Provident Fund Organisation (EPFO) has slashed the interest rates to 8.1 per cent, this is the lowest in last four decades. The last time when EPFO had paid less interest than this was in 1977-78 at 8 per cent.

The interest rates are revised every year. Last year in FY 2020-21, the interest rates were 8.5 per cent.

Since EPFO is one of the safest and tax-free investments made by the salaried people; its interest rates are kept in accordance to the international situation and volatility.

How does EPFO works?

EPFO invests 85 per cent of the amount in debt instruments including government securities and bonds and 15 percent in equity through ETFs. The earning from both decides the overall interest.