EPFO may declare interest rates on EPF deposits for 2020-21 today
- In March 2020, EPFO had reduced the interest rate on provident fund deposits to a seven-year low of 8.5% for 2019-20. The interest rate was 8.65% in 2018-19 and 8.55% for 2017-18. The interest rate was 8.65% in 2016-17.
The Employees’ Provident Fund Organisation (EPFO) is likely to announce the rate of interest on provident fund deposits for the financial year 2020-21 on Thura. EPFO’s central board of trustees are set to meet at Srinagar and reports have said that the retirement body may lower the interest rates on provident fund deposits owing to the economic slowdown throughout 2020 due to the coronavirus pandemic.
KE Raghunathan, an EPFO trustee, said last month that he had received intimation for the central board of trustees meeting and the agenda papers are likely to be sent soon, according to news agency PTI.
The board had earlier said that it would pay 8.5 per cent interest to its subscribers for the year ended March 31 in two instalments: one would be 8.15 per cent from debt investments and the second would be 0.35 per cent from equity.
In March 2020, EPFO had reduced the interest rate on provident fund deposits to a seven-year low of 8.5% for 2019-20. The interest rate was 8.65% in 2018-19 and 8.55% for 2017-18. The interest rate was 8.65% in 2016-17.
According to the payroll data released last Saturday, net new enrolments with EPFO grew by 24 per cent to 12.54 lakh in December compared to the same month in 2019. The labour ministry said in a statement that the provisional payroll data of EPFO highlights a positive trend for net subscriber base growth. Despite the Covid19 pandemic, EPFO added around 53.70 lakh subscribers during the first three quarters of the current financial year (April to December in 2020), the data showed.
The increase in the net new enrolments was partly attributed to recent e-initiatives taken by EPFO and schemes like Aatmanirbhar Bharat Rojgar Yojana, Pradhan Mantri Garib Kalyan Yojana and Pradhan Mantri Rojgar Protsahan Yojana that were introduced by the government.
(With agency inputs)