New Delhi: For the financial year 2020-21, the government has approved an interest rate of 8.5 percent on Employees’ Provident Fund. This is good news for over five crore subscribers of Employees’ Provident Fund Organisation, in the time of Diwali (EPFO). “The interest rate on EPF for 2020-21 has been confirmed by the Finance Ministry, and will now be credited to the accounts of over five crore customers,” a source said on Friday.
In March this year, the EPFO’s apex decision-making body, the Central Board of Trustees (CBT) headed by the Labor Minister, decided an interest rate of 8.5 per cent on provident fund deposits for the previous financial year.
EPFO reduced the interest rate on provident fund deposits to 8.5 per cent for 2019-20 from 8.65 per cent in 2018-19 in March of last year. The interest rate offered by EPF (Employees’ Provident Fund) for 2019-20 was the lowest since 2012-13, when it was reduced to 8.5 per cent. In 2016-17, EPFO offered an interest rate of 8.65 per cent to its subscribers, and in 2017-18 it offered an interest rate of 8.55 per cent. In 2015-16, the interest rate was slightly higher at 8.8 per cent. It offered an interest rate of 8.75 per cent in 2013-14 and 2014-15, up from 8.5 per cent in 2012-13. In 2011-12, the interest rate on provident funds was 8.25 per cent.