The retirement fund body Employees’ Provident Fund Organisation (EPFO) on Thursday lowered the interest rate on provident fund deposits to 8.50 per cent for the current financial year (2019-20).
The announcement was made by the Union Minister for Labour and Employment Santosh Gangwar. The decision was taken during the central board of trustees of EPFO meeting head earlier in the day.
“The EPFO has decided to provide 8.5 percent interest rate on EPF deposits for 2019-20 in the CBT meeting today,” Gangwar said here after the meeting.
In the last fiscal, 2018-19, the interest rate was at 8.65 per cent.
Post this interest rate cut, salaried employees will get 15 basis points (bps) lower returns on their provident fund deposits this fiscal.
The Labour Ministry is now waiting for the Finance Ministry to give its approval on the matter. The Finance Ministry has to vet the proposal for provident fund interest rate to avoid any liability on account of shortfall in the EPFO income for a fiscal.
(With input from agencies)