EPF Interest Rate Cut: Get ready to suffer another setback this year as the interest of Employees’ Provident Fund-EPF is going to decrease again in FY 20-21. If this happens, it will be a huge blow for crores of salaried class.
New Delhi: EPF Interest Rate Cut: Get ready to face another setback this year, as the Employees’ Provident Fund-EPF interest is going to decrease again in FY 20-21. If this happens, it will be a huge blow for crores of salaried class. Till now EPF subscribers who were worried about not getting interest till last year, now they are going to be hit double.
Interest on EPF will decrease!
According to information received from sources, during the Corona crisis, people have done a large number of EPF withdrawals, during which the contribution has also decreased. Due to which Employees’ Provident Fund Organization (EPFO) can decide to cut rates. The EPFO Central Board of Trustees (CBT) will meet on March 4 to decide on the new rates. In such an environment, rate cuts are considered fixed.
Decision on interest rates will be made on March 4
EPFO’s earnings in FY 2020 have been affected. Speaking to the PTI, EPFO trustee KE Raghunathan said that he has been told that on 4 March the Central Board of Trustees will meet in Srinagar, they will be sent agenda papers soon. No information has been given about the interest rates in the e-mail they received.
Lowest interest on EPF in 7 years
In FY 2020, EPF got an interest of 8.5%, which is the lowest interest in 7 years. Earlier in FY 2013, the interest rates on EPF were 8.5%. In March last year, the EPFO revived the interest. Earlier, in FY 2019, EPF used to get 8.65% interest. EPFO paid 8.55% interest in FY 2018, which was 8.8% in FY16. Prior to this, it was 8.75 percent in FY 2014.
Let us tell you that EPF has 6 crore subscribers across the country. In FY 2020 also these crores of people were delayed in getting interest due to the mess in KYC. After that, if interest rates are cut now it will be a big blow.
