Bad news for salaried employees as they could face a cut in interest on their provident fund (PF) deposits for FY20.
The Central Board of Trustees of Employees Provident Fund Organisation (EPFO) has recommended interest rate of 8.5% - the lowest interest rate in over five years - on provident fund deposits to around six crore subscribers for the current financial year.
"The EPFO has decided to provide 8.5 per cent interest rate on EPF deposits for 2019-20 in the Central Board of Trustees (CBT) meeting," Labour minister Santosh Kumar Gangwar told.
This is lower than the 8.65% interest rate given on employee provident fund (EPF) deposits for the previous financial year 2018-19.
The central board of trustees of the EPFO comprising representatives of employees, employers and governments both at the Centre and some member states met on Thursday to take a call on several issues including the much-awaited interest rate for 2019-20.
After the meeting, the minister stated that the new EPF interest rate would stand at 8.50% rather than 8.65%.