EPFO keeps interest rate unchanged for FY2021

NEW DELHI: The Employees’ Provident Fund Organisation (EPFO), in a major relief to six crore subscribers, has decided to keep the interest rates unchanged for financial year 2021. This means the interest rate will remain at 8.5 per cent only.

Whereas, in March last year EPFO had reduced the interest rate and fixed it at 8.5 per cent. In 2019-20 the interest rate on PF was lowest after the year 2012-13.

According to the information, it was rumoured that the government will reduce the interest rate on the PF amount due to pandemic. However, the government did not take any such step giving much relief to PF holders.

According to payroll data released recently, the number of new registrations has increased by 24 per cent to 12.54 lakh in December. In competition with November, this increase is more than 44 per cent.

The Labour Ministry stated that according to the salary figures of the EPFO, 12.54 lakh account holders grew on a net basis in December 2020, which is a good sign.

EPF INTEREST RATES SO FAR-

2020-21 – 8.5 per cent
2019-20 – 8.5 per cent
2018-19 – 8.65 per cent
2017-18 – 8.55 per cent
2016-17 – 8.65 per cent
2015-16 – 8.8 per cent
2013-14 – 8.75 per cent