EPFO’s latest provisional payroll data released on Monday highlighted that the provident fund organisation added 17.21 lakh net subscribers in the month of September.
The Employee’s Provident Fund Organisation (EPFO) on Thursday decided to retain 8.5 per cent rate of interest on provident fund deposits for FY2020-21.
The EPFO apex decision-making body Central Board of Trustees decided to fix 8.5 per cent rate of interest for 2020-21 at its meeting in Srinagar on Thursday, reports said.
The disown comes amidst speculations that the EPFO would lower interest on provident fund deposits for this fiscal (2020-21) from 8.5 per cent given in 2019-20 in view of more withdrawals amid the coronavirus pandemic.
In March 2020, the EPFO had reduced interest rate on provident fund deposits to a seven-year low of 8.5 per cent for 2019-20, from 8.65 per cent in 2018-19.
The EPF interest rate provided for 2019-20 was the lowest since 2012-13, when it was same as current interest rate.
The EPFO had provided 8.65 per cent interest rate to its subscribers in 2016-17 and 8.55 per cent in 2017-18. The rate of interest was slightly higher at 8.8 per cent in 2015-16.
While presenting the Union Budget 2021, Finance Minister Nirmala Sitharaman had announced that PF subscribers who invest more than Rs 2.5 lakh into their PF accounts in a year will not be able to earn mandated 8.5 per cent tax-free return from next month.
Interest earned beyond Rs 2.5 lakh will be taxable as per the budget 2021.
EPFO has more than five crore active subscribers.