For the EPF, Central Board of Trustees in its meet held in Srinagar today held interest rates for FY21 steady at 8.5%, against expectations of a likely rate cut. This was as amid the pandemic led many to withdraw from EPF kitty and there was comparatively lesser contribution.
In 2018-19, the rate on social security scheme in which both the employer and employee contribute towards an employee's EPF account was at 8.65%. The EPF interest rate provided for 2019-20 was the lowest since 2012-13 when it was 8.5 percent, according to news agency Press Trust of India (PTI).
In 2016-17, the interest rate was also at 8.65% while for the year 2017-18, it was brought down to 8.55%. Also, in the Budget 2021, it is proposed that contributions beyond Rs. 2.5 lakh in a fiscal year towards will attract tax implication on interest earnings made.