The government-run Employee’s Provident Fund Organisation (EPFO) has announced that it will maintain the 8.5 percent interest rates on provident fund deposits for the financial year 2020-21.
EPFO’s Central Board of Trustees meeting held in Srinagar presided by the Minister of State for Labour and Employment Santosh Gangwar has made the decision to retain the 8.5 percent interest rate.
The news has brought much-needed relief for the employees as there were rumours of a cut in the interest rate due to the crisis in the economy.
EPFO had reduced the interest rate to 8.5 percent last year in March for the financial year 2019-20.
The Ministry of Labour and Employment released a statement over the EPFO interest rate which said, “A high EPF interest rate, along with compounding, makes a significant difference to gains of subscribers”.
It also added, the provident fund body has consistently followed a conservative approach towards investment and emphasized the safety and preservation of the principal first approach.
The risk appetite of EPFO is very low since it involves investing poor man’s retirement savings also.”
“The CBT has announced an assured fixed return approach of EPFO every year along with the tax exemptions which makes it an attractive choice for investors, providing them with strong social security in the form of provident fund, pension, and insurance schemes.”