EPFO decides to retain 8.5% interest rate on provident fund deposits for FY 2020-21
EPFO's decision comes amid speculation that the rate of interest would be lowered for this fiscal, in view of more withdrawals and less contribution from members due to COVID-19 pandemic
New Delhi: Retirement fund body EPFO on Thursday decided to retain 8.5 percent 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 8.5 percent rate of interest for 2020-21 at its meeting in Srinagar on Thursday, sources said.
There were speculations that the EPFO would lower interest on provident fund deposits for this fiscal (2020-21) from 8.5 percent 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 interest rate on provident fund deposits to a seven-year low of 8.5 percent for 2019-20, from 8.65 percent 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 percent.
The EPFO had provided 8.65 percent interest rate to its subscribers in 2016-17 and 8.55 percent in 2017-18. The rate of interest was slightly higher at 8.8 percent in 2015-16.
It had given 8.75 percent rate of interest in 2013-14 as well as 2014-15, higher than 8.5 percent for 2012-13. The EPFO had provided 8.25 percent rate of interest on provident fund in 2011-12.
EPFO allows another withdrawal from employee provident fund due to COVID second wave; check steps here
The EPFO has allowed subscribers to withdraw non-refundable advances in certain cases like illness and buying a house, among others
EPFO has asked banks not to deny monthly pension to people for want of biometric national ID, Aadhaar, and said that alternate means for identification should be used if needed
New member registrations with the EPFO for its various schemes declined to a four-month low of 4,72,075 in February