EPFO reduces interest rate on employee provident fund to 8.5%

The move means salaried employees will earn lower returns for the financial year ending on March 31, 2020

Retirement fund body Employees Provident Fund Organisation (EPFO) on Thursday lowered the interest rate on deposits to 8.50 per cent for the current financial year (FY20) from 8.65 per cent in 2018-19. The decision was taken at a meeting of the central board of trustees (CBT) of the EPFO.

"EPFO lowered interest rate on employee provident fund to 8.50 per cent for 2019-20 from 8.65 per cent in 2018-19," said Labour Minister Santosh Gangwar after the meeting.

Now, the labour ministry requires the finance ministry's concurrence on the matter. Since the Government of India is the guarantor, the finance