The Board of Trustees of EPFO has sent a proposal to the Finance Ministry to cut the interest rates of PF on Saturday. The latest rate is the lowest in the last forty years. For the financial year 2021-2022, it is now proposed to pay interest at the rate of 8.1 percent only. Now the government is in the midst of questions regarding this proposal. On this issue, Union Labor Minister Bhupendra Yadav has said that it is not wrong to reduce the interest on PF.
In a program in Assam, the Union Labor Minister said that the interest on FD and PPF is less, so it is not wrong to reduce the interest on PF as well. People on social media were not happy with this reasoning and told them fiercely. People said that the salary has been increased according to the inflation rate? Which is now being justified by reducing the interest rate.
Bhupendra Yadav said- “It seems right to announce 8.1% interest rate on EPF savings for 2021-22, when SBI gives around 5.4% returns on 10-year FDs, returns on savings instruments like PPF range from 6.8% to 7.1 % is in the range of %”.
Responding to his statement, a user named Sachin (@Really_sachin) wrote – “What is the inflation rate and is the salary increasing with inflation”? On the other hand, a user named Aman (@amanrocksgmail1) wrote – “EPF is not market linked nor is it an investment instrument, it is for the safety of every salaried middle class and their dignified life after retirement. The government should have been a little more sensitive about this.”.
Another user Rajneesh (@rajnieeshSikar07) criticized the government’s decision and wrote- “Mr Yadav, this is bad news when inflation is high and all banks are increasing FD rates. You are reducing the retirement of the salaried class. It’s too bad”.
Let us inform that the Board of Trustees of EPFO has sent a proposal to reduce the interest to the Ministry of Finance. On which a decision has to be taken now.