Big news! No change in EPFO interest rates for FY20-21

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.

It may be recalled that the government had announced to pay 8.5 percent interest for the financial year 2019-20. The Central Board of Trustees had earlier said that 8.5 percent interest will be paid in two installments in the financial year ending March 31. That is, 8.15 percent investment and 0.35 percent interest will be paid from equity.

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%.