The government has approved 8.5% rate of interest on employees’ provident fund for the 2020-21 fiscal.
The 8.5% 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 headed by labour minister in March this year.
A source said, “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.”
In March last year, the EPFO had lowered interest rate on provident fund deposits to a seven-year low of 8.5% for 2019-20, from 8.65% in 2018-19. The EPF interest rate provided for 2019-20 was the lowest since 2012-13, when it was brought down to 8.5%.
The EPFO had provided 8.65% interest rate to its subscribers in 2016-17 and 8.55% in 2017-18. The interest was slightly higher at 8.8% in 2015-16.