PF interest rate News

DA announcements are typically made in March and September of each year. The Finance Ministry halted the DA hike from January 2020 to June 30, 2021.

Each employee and the employer contribute 12% of their basic income to these PF accounts as a predetermined contribution. EPFO announces the PF interest rate every year. Employees have four options for checking the balance of their EPF accounts.

For the fiscal year 2020-2021, the government has transferred interest at an 8.5 percent rate. This additional money credited to PF account holders will be especially valuable in the event of a medical emergency. This money is intended for large-ticket purchases such as a home, automobile, or education, as well as retirement.

EPFO cut the interest rate to a seven-year low of 8.5 percent for 2019-20 in March. Citing the Covid-19 pandemic, EPFO recently permitted members to take money out of their retirement fund as a non-refundable advance. EPFO offered its subscribers an interest rate of 8.55 percent. In 2016-17, the interest rate was 8.65%.

Retirement fund body EPFO will not revise its interim interest rate of 8.8 percent downward for the current financial year, Labour Minister Bandaru Dattatreya said Friday.

Interest on short-term post office saving deposits was Tuesday cut by 0.25 percent while the rate on employees' provident fund was increased marginally to 8.8 percent.

Since today's announcement is an interim one, CBT will meet again later to discuss the possibility of any further increase in interest rates.

The Employees' Provident Fund Organisation (EPFO) had provided 8.75 percent interest on PF deposits for 2013-14 and 2014-15.

Retirement fund body EPFO has settled 1.19 crore claims in the current fiscal year so far.

Retirement fund body EPFO is likely to announce the rate of interest on PF deposits for 2014-15 to its over 5 crore subscribers at its trustees meet on August 26.