Government has approved an interest rate of 8.5 percent on EPF for FY 2021

Government has approved an interest rate of 8.5 percent on EPF for FY 2021

According to a source, the government has approved an 8.5 percent rate of interest on employee provident funds for the fiscal year 2020-21.

This is welcome news for the Employees Provident Fund Organisation‘s over five crore (50 million) subscribers, just in time for Diwali (EPFO).

In March of this year, the EPFO’s ultimate decision-making body, the Central Board of Trustees (CBT), chaired by Labour Minister, voted on an interest rate of 8.5 percent on provident fund deposits for the current financial year.

“The rate of interest on EPF for 2020-21 has been confirmed by the Ministry of Finance, and it will now be credited into the accounts of nearly five crore members,” a source said on Friday.

The EPFO cut the interest rate on provident fund deposits to 8.5 percent for 2019-20, down from 8.65 percent in 2018-19, in March of last year.

The interest rate offered for 2019-20 by the EPF (Employees Provident Fund) was the lowest since 2012-13, when it was reduced to 8.5 percent.

In 2016-17, the EPFO offered its subscribers an interest rate of 8.65%, and in 2017-18, it offered an interest rate of 8.55 percent. In 2015-16, the interest rate was slightly higher, at 8.8%.

It offered an interest rate of 8.75 percent in 2013-14 and 2014-15, up from 8.5 percent in 2012-13. In 2011-12, the rate of interest on the provident fund was 8.25 percent.

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