EPFO NEWS ALERT! GOOD NEWS for 6 crore PF subscribers: 8.5 % Interest on Provident Fund deposits to be credited? Check date

In a good news for around 6 crore government employees, covered under the ambit of provident fund, the Employees Provident Fund Organisation (EPFO) will soon credit 8.5 per cent interest for FY 2020-21 in the account of these employees, said sources

In the last FY 2019-20, many EPF subscribers had to wait for 8 to 10 months for getting their due in the form of interest rate. Source: PTI/Pixabay

In a good news for around 6 crore government employees, covered under the ambit of provident fund, the Employees Provident Fund Organisation (EPFO) will soon credit 8.5 per cent interest for FY 2020-21 in the account of these employees, said sources. It is learnt that Labour Ministry had given a green signal to the proposal in this regard and interest will be credited into beneficiaries account by July end itself.

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In the last FY 2019-20, many EPF subscribers had to wait for 8 to 10 months for getting their due in the form of interest rate.

Interest rate unchanged on PF deposits at 8.5 per cent

Earlier, the Employees Provident Fund Organisation has decided to keep the interest rate unchanged at 8.5 per cent, which is the lowest interest rate offered by the India's social security body in the past 7 seven years. Besides, in order to support EPF subscribers during these difficult times of coronavirus pandemic, the EPFO had also given withdrawal approval to non-refundable Covid 19 advance amount.

The decision to keep the interest rate unchanged at 8.5 per cent was taking in a board meeting chaired by Labour and Employment Minister Santosh Kumar Gangwar in Srinagar in March.

What labour Ministry had said?

"Since FY14, EPFO has consistently generated returns of over 8.5 per cent. A high EPF interest rate along with compounding makes a significant difference to gains of subscribers. This is despite the fact that EPFO has consistently followed a conservative approach towards investment, putting highest emphasis on the safety and preservation of principal first approach. Risk appetite of EPFO is very low since it involves investing poor man's retirement savings also," the Labour Ministry had said in a statement after announcing to keep the interest rate on PF deposits same as the last year.

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Employees Provident Fund Organisation (EPFO)Provident Fund