EPFO fixes 8.5 per cent rate of interest on EPF deposits for 2020-21: Sources

New Delhi: Central Board of Employees’ Provident Fund Organisation (EPFO) recommends 8.50% rate of interest to its subscribers for year 2020-21, said Ministry of Labour & Employment.

The Ministry of Labour & Employment further said, FDI equity inflow grew by 40% in the first 9 months of FY 2020-21 (USD 51.47 billion) compared to the year-ago period (USD 36.77 billion).

EPFO had slashed the interest rate on provident fund deposits for FY20 to 8.5 percent, down from 8.65 percent in 2018-19. This is to note that this was the lowest interest rate since 2012-13. Also, since 2012-13, the 2019-20 EPF interest rate was the weakest when it was 8.5 percent.

While in the year 2016-17, EPFO offered its members an interest rate of 8.65 percent, followed by 8.55 percent in 2017-18. Whereas the interest rate was marginally higher in 2015-16 at 8.8 percent.

In the month of December 2020, new enrolments with EPFO grew by 24 percent to 12.54 lakh compared to the same month in 2019, according to the payroll data released on Saturday.