Employees Provident Fund Organization is the body that is tasked to assist the Central Board of Trustees. The body is now likely to announce the rate of interest in provident fund. This will be regarding the year 2020-2021. As the Indian economy is seen to have hiked in the context of fuel prices like Petrol, Diesel, LPG, and many more. But recently it is observed that EPF will bring a cut again in the financial year. This seems to be bad news for almost 6 crore salaried employees of India. Earlier those people who have been working on PF-based salaries were worried about their interest money till last year. As it seems that these people will now be affected in another manner. With the introduction of these new rates, the employees will be affected in the country.
The interest rate on PF
Earlier it was observed that the organization has lowered the interest rate on provident fund deposits to a seven-year low of 8.5 percent for 2019-2020. In 2018-2019 it was observed that the interest rate was 8.65 percent. This 2019-2020 rate was the lowest since 2012-2013. But it we look over the past details then EPFO has set the interest rate for around 8.8% in 2015-2016. Now after looking after the past details it is observed that now rates will go down. But today the organization will hold a meeting which will declare the interest rate for this year.
EPF for FY 2020-2021
Earlier it was observed that the rates will go down but in the meeting the things were different. This is a major relief to 60 million employees. As EPFO has retained the interest payout on PF funds deposit. This rate is at 8.5% for 2021-2021 same as the preceding fiscal. However, in this pandemic situation, the organization has lower deposits. This was the 228th CBT meeting. The meeting held at Srinagar on Thursday.
It was observed that more than 20 million EPFO subscribers made cumulative Withdrawals of over Rs 73,000 crore until December 31, 2020. As in this current pandemic situation in May and July period the government has reduced the PF contribution to 10%. This has allowed people to make high salaries. However, EPFO has not discussed any such established.