The Employees' Provident Fund Organisation (EPFO) on Thursday lowered the interest rate on provident fund deposits to 8.50 percent for the financial year 2019-20, union minister for labour and employment Santosh Gangwar said on Thursday.
In the last fiscal, 2018-19, the interest rate was at 8.65 percent.
Post this interest rate cut, salaried employees will get 15 basis points (bps) lower returns on their provident fund deposits this fiscal.
The decision was taken at the just-concluded meeting of the central board of trustees of EPFO.
Union labour minister Santosh Gangwar said, "The Central Board of Trustees met today and decided to decrease the rate of employees provident fund to 8.5 percent for 2019-2020. The body has a surplus of Rs 700 crore."
The labour ministry will now require the finance ministry's approval on the matter. The finance ministry has to vet the proposal for provident fund interest rate to avoid any liability on account of shortfall in the EPFO income for a fiscal.
First Published: Mar 5, 2020 2:52 PM IST
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