Generally employees contributes 12% of their basic pay to employees provident fund organisation (EPFO)in addition to the employers(recruiter)contribution. That EPF contribution would be utilised by withdrawing lumpsum amount at retirement.
But the recent amendment by CBDT(Central Board of Direct Taxes) makes epfo subscribes worrisome. CBDT has approved a draft to slash epf interest rate to 8.1% which was lowest of the past 4 decades(40 years).
This decision to slash epf interest rate hurts the sentiment of the employees. When we closely observe the past 40 years data , proposed interest rate is at lowest of the 4 decades.
As per economical data EPF Interest Rates for the past few years are as follows
| Year | EPF Interest Rate |
| 2013-14 | 8.75% |
| 2014-15 | 8.75% |
| 2015-16 | 8.80% |
| 2016-17 | 8.65% |
| 2018-19 | 8.65% |
| 2019-20 | 8.5% |
| 2020-21 | 8.5% |
| 2021-22 | 8.1% |
As per historic data , 8% interest was applied to epf subscribers a/c’s during 1977-78 and the current 8.1% was the next lowest from the past 40 years.
Though this is hard to digest, it is mandatory to contribute 12% of your basic pay along with your employers contribution.
bank-info.in 