The decision on the interest rates has been taken in the meeting of the Central Board of Trustees (CBT) of the EPFO in Srinagar. According to information received by sources from Money9, there has been no change in the interest rate for 2020-21 in this meeting. It is stable at 8.5 percent. EPF is an essential contribution from the salary of a person doing a job. Any company that employs more than 20 employees. They have to deduct the EPF of the employee.
EPFO board member and general secretary of Bharatiya Mazdoor Sangh Virjesh Upadhyay told Money9 that EPFO has recommended 8.50 per cent interest for the financial year 2020-21. This will be notified in the official gadget. This decision of the board is worthwhile, despite the slowdown in the economy due to Covid-19, the board has not cut interest rates.
In the last few years, the interest rates on PF have come down. This is the lowest level of interest on PF for 2019-20, after 2012-13. In 2018-19, EPFO paid 8.65 per cent interest to subscribers.
This has been the interest rate in the last few years –
2019-20 – 8.5%
2018-19 – 8.65%
2017-18 – 8.55%
2016-17 – 8.65%
2015-16 – 8.8%
2013-14 – 8.75%
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.
According to the latest report released by the National Statistical Office (NSO), net new enrolments with retirement fund body EPFO stood over 1.25 million in December, up from 870,000 in November 2020.
“The data reflects an increase of 44 % in net subscribers’ addition over the previous month of November 2020. A year-on-year comparison of payroll data shows 24% growth for December 2020, indicating a return to the pre-coronavirus disease (Covid-19) levels of subscriber growth for EPFO,” the labour ministry had said in a statement.