Question : Rate of Interest of EPFO

(a)the rate of interest paid to the Employees’ Provident Fund subscribers during each of the last three years;
(b)whether the Employees’ Provident Fund Organization (EPFO) has proposed further reduced interest rate on Employees’ Provident Fund for the Financial Year, 2020;
(c)if so, the details thereof and the reasons therefor along with the interest rate being provided on Employees’ Provident Fund at present;
(d)the number of employees likely to suffer loss as a result thereof; and
(e)the total number of such employees contributing regularly to this Fund, State/UT-wise?

(a): The details of rate of interest paid to the Employees'' Provident Fund (EPF) subscribers during the last three financial years are as under:
Contd..2/-
:: 2 ::
Year Rate of Interest per annum ( in per cent.)
2016-17 8.65
2017-18 8.55
2018-19 8.65

(b) & (c): The rate of interest to be credited to EPF members’ accounts is based on Incomes and Liabilities for the particular financial year as per Paragraph 60(4) of the EPF Scheme 1952. In view of exceptional circumstances arising out of COVID-19, the agenda regarding Interest Rate was reviewed by the Central Board, EPF in its 227th Meeting held on 9th September, 2020 and it recommended the earlier rate of interest @ 8.50% for the financial year 2019-20 to the Central Government. The recommendation of the Central Board of Trustees requires approval of the Government.
(d) & (e): The declaration of EPF Rate of Interest is a dynamic exercise depending upon the earnings of the particular year. There is no fixed/ standard rate of interest from which the declared EPF interest rate can be compared to arrive at gain/loss to employees.
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