The Employee's Provident Fund Organisation (EPFO) on Thursday decided to retain interest rate on provident fund deposits at 8.5 per cent for the financial year 2020-21. This was decided at the 228th meeting of the EPFO central board of trustees (CBT) that was held today in Srinagar. Union Labour Minister Santosh Kumar Gangwar is the chairman of the CBT. The board took the decision after it reviewed its earnings and financial position.
There were speculations that the retirement fund body would lower interest rates for the current fiscal as economic downfall due to the coronavirus pandemic led to large number of withdrawals.
It was in March last year, that the EPFO had reduced interest rate on provident fund deposits to a seven-year low of 8.5 per cent for 2019-20.
The EPF interest rate provided for 2019-20 was the lowest since 2012-13, when it was 8.5 per cent.
The EPFO had provided 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 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 8.25 per cent rate of interest on provident fund in 2011-12.