The Employees’ Provident Fund Organisation (EPFO) has kept the interest rates on PF deposits unchanged at 8.5 per cent for the financial year 2020-21. The decision was taken at a meeting of EPFO central board of trustees in Srinagar on Thursday (March 4) in the presence of Union Labour Minister Santosh Gangwar.
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In March 2020, EPFO had lowered the interest rate on PF deposits to 8.5 per cent for 2019-20 – a drop from 8.65 per cent in 2018-19. The EPF (Employees Provident Fund) interest rate for 2019-20 was the lowest since 2012-13, when it was 8.5 per cent.
In 2016-17, the interest rate was 8.65 per cent; 8.55 per cent in 2017-18; and 8.8 per cent in 2015-16.
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It was widely speculated that EPFO would lower the interest rate for 2020-21 because of excessive withdrawals and fewer contribution by members amid the COVID pandemic.
EPFO has more than five crore active subscribers in the country.