While rising costs of petrol, diesel and LPG cylinders are already troubling the salaried class, they’re more likely to endure one other main blow because the rate of interest on the Employees’ Provident Fund (EPF) may very well be slashed for the monetary yr 2020-21. Over 6 crore people will be affected from the transfer.
The will be an enormous setback to the PF subscribers who have been already nervous about not getting the curiosity until final yr.
According to a Zee News report citing sources, people have completed a lot of EPF withdrawals in the course of the coronavirus pandemic, throughout which the PF Contribution has additionally decreased. It is because of this that the Employees’ Provident Fund Organization (EPFO) would possibly go forward with the reduce in rates of interest. The EPFO Central Board of Trustees (CBT) will meet on March 4 to resolve on the new charges.
It could also be recalled that the government had introduced to pay 8.5 % curiosity for the monetary yr 2019-20. The Central Board of Trustees had earlier mentioned that 8.5 % curiosity will be paid in two installments within the monetary yr ending March 31. That is, 8.15 % funding and 0.35 % curiosity will be paid from fairness.
Interest on EPF was 8.5% in FY 2020, which is the bottom curiosity in 7 years. Prior to this in FY 2013, the rates of interest on EPF have been 8.5%. In March final yr, the EPFO revived the curiosity. Earlier, in FY 2019, EPF used to get 8.65% curiosity. EPFO paid 8.55% curiosity in FY 2018, which was 8.8% in its first fiscal yr 2016. Earlier, in FY 2014, it was 8.75%.