Today i.e. on Wednesday, in the meeting of EPFO, the matter of delay can be raised in the confirmation of the decision to give 8.5 percent interest on the Provident Fund for the year 2019-20.
new Delhi:
Employees Provident Fund Organization (EPFO): The EPFO (Employees Provident Fund Organization) in March announced a reduction in the interest rate that employees receive over provident funds. The Central Board of Trustees of EPFO had announced a reduction of 0.15 per cent in interest on PF in its meeting on 5 March. It was decided to reduce the interest rate on PF to 8.5 per cent for the financial year 2019-20. Today i.e. on Wednesday, in the meeting of EPFO, the matter of delay can be raised in confirmation of the decision of giving 8.5 percent interest on the Employees Provident Fund (EPF) for the year 2019-20.
The proposed rate of EPF will be the minimum rate for seven years
The Chairman of the Board of Trustees is Labor Minister Santosh Gangwar. This proposed rate of EPF will be the minimum rate for seven years. This decision of the Central Board of Trustees was sent for the consent of the Finance Ministry, but has not yet received its approval from the Ministry of Finance. The decision to amend the annual interest rate on EPF applies only with the consent of the Finance Ministry. On the condition of anonymity, a member of the trust said that we will raise the issue of delay in approval of interest rate in this meeting. The Central Board of Trustees has decided in this regard only in March. This issue is not on the agenda of the September 9 meeting but we can raise it. Earlier, for the year 2018-19, EPF account holders got 8.65 percent interest on their deposited funds.
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FY – Interest Rate
2019-20 – 8.50 percent
2018-19 – 8.65 percent
2017-18 – 8.55 percent
2016-17 – 8.65%
2015-16 – 8.8 percent
2014-15 – 8.75 percent
2013-14 – 8.75 percent
The provident fund of the employees consists of 12% of the basic salary. 12%
of the basic salary (basic salary + dearness allowance) of the employees covered under EPFO goes to the provident fund and the company contributes the same. At the same time, 8.33 percent of the contribution made by the company goes to the Employee Pension Scheme-EPS. Also, the central government also contributes 1.16 percent of the basic salary in EPS.
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