Srinagar: The 228th meeting of Central Board of Trustees, Employees Provident Fund (EPF) held here today under the chairmanship of Santosh Kumar Gangwar, Union Minister of State for Labour and Employment(Independent Charge), recommended 8.50% annual rate of interest to be credited on EPF accumulations in members’ accounts for the financial year 2020-21.
The interest rate would be officially notified in the government gazette following which EPF Organisation would credit the rate of interest into the subscribers’ accounts.
Since FY 2014 EPFO has consistently generated returns not less than 8.50 percent. A high EPF interest rate along with compounding , makes a significant difference to gains of subscribers.
This, the Ministry of Labour and Employment, claimed was despite the fact that EPFO has consistently followed a conservative approach towards investment, putting highest emphasis on the safety and preservation of principal first approach. “Risk appetite of EPFO is very low, since it involves investing poor man’s retirement savings also,” the Ministry added.
– global bihari bureau
