EPFO cuts interest rate on deposits to 8.5%

Sambad English Bureau Published On : Mar 5, 2020 at 2:01 PM Updated On : Mar 5, 2020 at 2:02 PM

Mumbai: Retirement fund body EPFO on Thursday lowered interest rate on provident fund deposits to 8.5 percent for the current financial year, said Labour Minister Santosh Gangwar on Thursday.

The EPFO had provided an 8.65 percent rate of interest on EPF for 2018-19 to its around six crore subscribers. The decision was taken at a meeting of the Employees’ Provident Fund Organisation’s (EPFO) apex decision-making body — the Central Board of Trustee.

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“The EPFO has decided to provide an 8.5 percent interest rate on EPF deposits for 2019-20 in the Central Board of Trustees (CBT) meeting today,” Gangwar told reporters after the meeting here.

Now, the labour ministry requires the finance ministry’s concurrence on the matter. Since the Government of India is the guarantor, the finance ministry has to vet the proposal for EPF interest rate to avoid any liability on account of shortfall in the EPFO income for a fiscal.

(PTI)