Govt nod to 8.5% interest rate on EPF for 2021
The Central Government has approved 8.5 per cent rate of interest on employees' provident fund (EPF) for 2020-21 fiscal.
Just ahead of Diwali, the decision is set to benefit more than five crore subscribers of the Employees Provident Fund Organisation (EPFO).
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The 8.5 per cent rate of interest on provident fund (PF) deposits for the last financial year was decided by the EPFO's apex decision making body --- Central Board of Trustees (CBT) headed by the Labour Minister in March this year.
Sources said the rate of interest on the EPF for 2020-21 had 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 per cent for 2019-20, from 8.65 per cent in 2018-19.
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The EPF (Employees Provident Fund) interest rate provided for 2019-20 was the lowest since 2012-13, when it was brought down to 8.5 per cent.
The EPFO had provided 8.65 per cent interest rate to its subscribers in 2016-17 and 8.55 per cent in 2017-18. The rate of interest was slightly higher at 8.8 per cent in 2015-16.
It had given 8.75 per cent rate of interest in 2013-14 as well as in 2014-15, higher than 8.5 per cent for 2012-13. The rate of interest was 8.25 per cent on provident fund in 2011-12.
-PTC News with inputs from agencies
