The Central Board of Trustees (CBT) meeting of Employees’ Provident Fund Organization i.e. EPFO is going to be held next month. In the meeting, the interest rate for 2021-20 in PF (Providend Fund) will be decided. According to the annual report of 2019-20, there are 24.77 crore account holders of EPFO.
Union Labor Minister Bhupendra Yadav said that the CBT meeting of EPFO will be held in Guwahati in March. Where the interest rate will be decided on the basis of the offer. Bhupendra Yadav is currently the CBT chief. PF interest rate was kept at 8.50% in 2020-21. On the question of continuation of the previous interest rate, he said that its decision will be decided on the basis of this year’s earnings.
Interest rate is decided at the end of the financial year
Finance Investment and Audit Committee meets first for the decision of interest rate in PF. It gives an account of the money accumulated in this financial year. After this the CBT meeting takes place. After the decision of the CBT, the interest rate is applied after the consent of the Ministry of Finance. The interest rate is decided at the end of the financial year.
Highest 12% interest till date
Talking about the last two financial years (2019-20 and 2020-21), the interest rate has been from 8.50%. It has been 8.65% in 2018-19. On the other hand, if we talk about the highest interest till now, then it has been in the financial year 1989-2000. PF was started in 1952. From 1952 to 1955 there has been an interest of 3%.