EPF interest rate reduced to 8.50% from 8.65% for FY 2019-20
The Employees’ Provident Fund Organisation (EPFO) lowered the interest rate on provident fund deposits to 8.50% for FY20 (2019-20) from 8.65% in FY19 (2018-19).
The move will affect the PF deposits of over 6 crore active subscribers.
The EPF interest rate announced for the current fiscal is lowest since 2012-13, when it was 8.5 per cent..
The EPFO had provided 8.65 per cent interest rate to its subscribers for 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..
It had given 8.75 per cent rate of interest in 2013-14 as well as 2014-15, higher than 8.5 per cent for 2012-13..
The labour ministry requires the finance ministry’s concurrence to provide a rate of interest on EPF deposits in a fiscal year. Since the Government of India is the guarantor, finance ministry vets the proposal for EPF interest rate to avoid any liability on account of shortfall in the EPFO income for a fiscal.