The Employees' Provident Fund Organisation (EPFO) on Thursday, March 4, kept the interest rate intact at 8.5% for fiscal 2020-21, keeping it unchanged from last year.
The retirement body's central board of trustees, who met in Srinagar, ratified the rate after assessing earnings and financial positions. The meeting was chaired by Labour and Employment Minister Santosh Kumar Gangwar.
EPFO's financial advisory panel had already met on Wednesday evening, March 3, and recommended the retirement fund body's board to retain the interest rate at 8.5%.
Although the 8.5% interest disbursement is the same as last fiscal, it will cheer 60 million (6 crore) subscribers, and anything less than the said rate could have been the lowest in a decade. The EPF interest rate stood at 8.65% in FY19.
The 2019-20's interest payout was in the news for myriad reasons, comprising delay in the sale of equity and interest credit, speculations of disbursing it in two installments, and qualms on whether EPFO can pay 8.5% post the coronavirus-induced economic slump throughout 2020.
Even when the retirement body made the decision to credit the amount, around 4 million EPFO subscribers did not get it in due course because of KYC mismatches.