The interest rate of employees' provident fund (EPF) for 2021-22 has been slashed from the existing 8.5 per cent to 8.1 per cent for 2021-22 on Saturday. This is the lowest rate since 1977-78, when it was 8 per cent, labour ministry sources said.

There are around five crore subscribers of employees provident fund organsation (EPFO), sources said.

The decision was taken during the meeting of the EPFO's central board of trustees, which was held in Guwahati.

The recommendation of the board will be sent to finance ministry soon.

The interest rate was 8.5 per cent in 2020-21.

EPFO will direct its field offices to credit the interest income calculated at the new rate of 8.1 per cent for 2021-22 in the subscribers' accounts once the finance ministry ratifies the board's decision.

In March 2020, EPFO had lowered the interest rate on provident fund deposits to a seven-year low of 8.5 per cent for 2019-20, from 8.65 per cent provided for 2018-19.

The EPF interest rate provided for 2019-20 was the lowest since 2012-13, when it was brought down to 8.5 per cent.

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