EPFO likely fixed 8.5% interest rate on PF deposits for 2020-21: Report

The retirement fund body is likely to announce the rates in a few hours. The Central Board of Trustees (CBT), which is the main decision-making body of EPFO, is meeting in Srinagar

The Employees’ Provident Fund Organisation (EPFO) has likely fixed the interest rate on provident fund deposits at 8.5 per cent for financial year 2020-21, according to a report by news agency PTI.

The retirement fund body is likely to announce the rates today. The Central Board of Trustees (CBT), which is the main decision-making body of EPFO, is meeting in Srinagar. 

The decision will come on the back of large withdrawals and fewer contributions through out the last year amid the coronavirus pandemic.

In March, last year, the EPFO had reduced the interest rate to a 8.5 per cent for 2019-20, which is a seven-year low. The interest rate was 8.65 per cent in 2018-19 and 8.55 per cent for 2017-18. It was 8.65 per cent in 2016-17.

Net new enrolments with the retirement fund body grew by 24 per cent to 1.25 million in December, indicating a return to the pre-Covid levels of subscriber growth for the EPFO, according to the payroll data released last Saturday.