New Delhi (NVI): Employees’ Provident Fund Organisation (EPFO) has reduced the interest rate on employee provident fund from 8.65 per cent in the last fiscal (2018-19) to 8.50 per cent for this fiscal (2019-20).
Union Labour Minister Santosh Gangwar confirmed the interest rate cut today, as the move is expected to affect around 6 crore people who have PF account with the retirement fund body.
The decision was taken at the central board of trustees (CBT) meeting of the retirement fund body Employees’ Provident Fund Organisation (EPFO) here today.
The salaried employees would earn 0.15 per cent lower returns for their provident fund deposits in this financial year ending March 31, 2020.
The EPFO has invested 85 per cent of its annual accruals in the debt market and 15 per cent in equities through exchange-traded funds.
As on March 31, 2019, EPFO has made a cumulative investment of Rs 74,324 crore fetching a return of 14.74 per cent.
