The Employees’ Provident Fund Organisation (EPFO) has maintained 8.5 per cent interest for 2020-21, the same rate fixed for the last fiscal 2019-20.
The decision was taken at the Central Board of Trustees (CBT) meeting, which is the main decision-making body of EPFO.
The announcement comes on the back of large withdrawals and fewer contributions through last year amid the coronavirus pandemic.
When the lockdown due to the coronavirus outbreak was imposed in March, the EPFO had allowed the subscribers to make a partial withdrawal, or ‘advance’ withdrawal of up to 75 percent of balance or three months’ wages, whichever is lower, as non-refundable advance from their PF corpus.
As per reports, the retirement fund body settled 56.79 lakh COVID-19 non-refundable advance claims and disbursed Rs 14,310 crore till December 31, 2020.
Last year, in March, EPFO had lowered the interest rate on provident fund deposits to a seven-year low of 8.5 percent for 2019-20, from 8.65 percent in 2018-19. The EPF interest rate provided for 2019-20 was the lowest since 2012-13 when it was 8.5 percent.
The EPFO had provided an 8.65 percent interest rate to its subscribers for 2016-17, and 8.55 percent in 2017-18. The rate of interest was slightly higher at 8.8 percent in 2015-16. ReadMore>>
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