EPFO update: 24 crore accountholders may soon get good news, big decision next month

The central government is set to bring good news for nearly 24 crore accountholders. There is hope that EPFO's apex decision-making body Central Board of Trustee may hike the interest rate on employees' provident fund deposits for 2021-22 in its meeting in March.

During the meeting next month, the interest rate for the current fiscal year will be decided. Union Minister for Labour Bhupendra Yadav has said that EPFO’s CBT meeting will be conducted in Guwahati in March, where the proposal to decided interest rates for 2021-22 is listed for discussion.

When recently asked by media whether the EPFO 2021-22 interest rate will remain at 8.5% like 2020-21, he informed that the decision on the interest rate will be taken based on the income for the current financial year. Bhupendra Yadav is also the head of CBT.

Interest rate digits over the last decade

Once the CBT decides on the interest rates for the current year, the proposal will then be forwarded to the Finance Ministry for approval. In March 2020, the EPFO had decreased the interest rate on provident fund deposit to 8.5%, the lowest level in 7 years.

The EPFO recently informed via its Twitter handle that the interest had been deposited in more than 24 crore PF accounts for the financial year 2020-21. This was done on an interest rate of 8.5%.