New Delhi: The Employee’s Provident Fund Organisation (EPFO) today kept the rate of interest on provident fund deposits unchanged at 8.5% for 2020-21 financial year. A decision in this regard was taken at the 228th meeting of Central Board of Trustees (CBT) of EPF held under the chairmanship of Santosh Kumar Gangwar, Union Minister of State for Labour & Employment (Independent Charge) in Srinagar, Jammu & Kashmir.
The Central Board recommended 8.5% annual rate of interest to be credited on EPF accumulations in members’ accounts for the financial year 2020-21. The interest rate would be officially notified in the government gazette following which EPFO would credit the rate of interest into the subscribers’ accounts, the central government said in a statement.
In last fiscal, the employee’s provident fund interest rate was at 8.5%.
Worth mentioning, a high EPF interest rate along with compounding, makes a significant difference to the gains of subscribers. The assured fixed return approach of EPFO, announced by the Central Board every year along with the tax exemptions makes it an attractive choice for investors, providing them with strong social security in the form of provident fund, pension and insurance schemes.