Good news for six crore EPFO members! check how much your Provident Fund (PF) will grow after EPF interest rate for FY21 announced
EPFO Members: The Employees Provident Fund Organisation (EPFO) has a piece of good news for around 6 crore EPFO subscribers. The Provident Fund (PF) regulator body in India has announced 8.5 per cent EPF interest rate for the EPF account holders for FY21.
EPFO Members: The Employees' Provident Fund Organisation (EPFO) has a piece of good news for around 6 crore EPFO subscribers. The Provident Fund (PF) regulator body in India has announced 8.5 per cent EPF interest rate for the EPF account holders for FY21. As per the Zee Business sources, the EPFO has kept EPF rate of interest unchanged as it has garnered whopping profit from its equity market investments. The EPFO had announced the same 8.50 per cent EPF interest rate for FY 2019-20 that was warmly accepted by EPFO members as it was much more than the equity and bond market returns in that fiscal.
On EPFO keeping EPF interest rate unchanged for FY 2021-22 the Zee Business exclusive report said, "Due to the COVID-19 outbreak, it was anticipated that the EPFO will announce EPF interest rate lower than the previous year's EPF rate of interest given to the EPF passbook holders. However, the EPFO has kept EPF interest rate unchanged for FY 2021-22 as the EPFO has registered around Rs 6,000 crore surplus, which could become possible due to the rebound in the equity market."
The Zee Business exclusive report went on to add that the EPFO could have easily cut down the EPF interest rate for FT 2021-22 but it chose to keep the provident fund interest rate for the private sector employees at 8.5 per cent as it is one of the most important retirement funds on which a private sector employee banks upon to accumulate retirement fund.
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EPF interest rate in previous years
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 8.80 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 8.50 per cent for 2012-13. The EPFO had provided 8.25 per cent rate of interest on provident fund in 2011-12.
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