New Delhi: Retirement fund body EPFO on Thursday (March 4) decided to retain an 8.5 per cent rate of interest on provident fund deposits for the current financial year.
EPFO has more than five crore active subscribers.
The Employees’ Provident Fund Organisation’s (EPFO) apex decision-making body Central Board of Trustees decided to fix an 8.5 per cent rate of interest for 2020-21 at its meeting in Srinagar on Thursday (March 4), sources said.
There were speculations that the EPFO would lower interest on provident fund deposits for this fiscal (2020-21) from 8.5 per cent given in 2019-20 in view of more withdrawals and lesser contribution by members amid the coronavirus pandemic.
In March last year, the 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 in 2018-19. The EPF (Employees Provident Fund) interest rate provided for 2019-20 was the lowest since 2012-13 when it was 8.5 per cent.
The EPFO had provided an 8.65 per cent interest rate to its subscribers in 2016-17 and 8.55 per cent in 2017-18. The rate of interest was slightly higher at 8.8 per cent in 2015-16.
It had given an 8.75 per cent rate of interest in 2013-14 as well as 2014-15, higher than 8.5 per cent for 2012-13. The EPFO had provided an 8.25 per cent rate of interest on the provident fund in 2011-12.
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