EPFO keeps interest rate untouched at 8.5 per cent for 2020-21

In a major relief for over 6 crore PF subscribers, the government has decided to keep the interest rates unchanged for FY21.The decision was taken during a meeting EPFO's Central Board of Trustees. At present, the interest rate is 8.5%. Earlier, it was expected that the Employees' Provident Fund Organization (EPFO) might go ahead with the cut in interest rates. As per a Zee News report citing sources, people have done a large number of EPF withdrawals during the coronavirus pandemic, during which the PF Contribution has also decreased.

Interest on EPF was 8.5% in FY 2020, which is the lowest interest in 7 years. Prior to this in FY 2013, the interest rates on EPF were 8.5%. In March last year, the EPFO ​​revived the interest. Earlier, in FY 2019, EPF used to get 8.65% interest. EPFO paid 8.55% interest in FY 2018, which was 8.8% in its first fiscal year 2016. Earlier, in FY 2014, it was 8.75%. 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 2014-15, higher than 8.5 per cent for 2012-13. The EPFO had provided 8.25 per cent rate of interest on provident fund in 2011-12.