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.
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.
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.