Government approves 8.5 per cent rate of interest on employees' provident fund for the 2020-21 fiscal, sources inform news agency PTI. The 8.5 per cent rate of interest on provident fund deposits for the last financial year was decided by the EPFO's apex decision making body Central Board of Trustees (CBT) headed by the Labour Minister in March this year.
The news is encouraging for more than five crore subscribers of the Employees Provident Fund Organisation (EPFO). The source informed, "The rate of interest on EPF for 2020-21 has been ratified by the Ministry of Finance and now it would be credited into the accounts of over five crore subscribers."
EPFO had lowered the interest rate on provident fund deposits to a seven-year of 8.5 per cent during the 2019-20 fiscal, from 8.65 per cent in the preceding fiscal. The former was the lowest interest rate since 2012-13 when it was bought down to 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 an 8.75 per cent rate of interest in 2013-14 as well as in 2014-15, higher than 8.5 per cent for 2012-13. The rate of interest was 8.25 per cent on the provident fund in 2011-12.
(With inputs from PTI)
